J 

163 
1907 


A 

A 

0 
0 

UCSOUTHE 

1 

RNF 

III 

1 

-  8 

0 

lEGIONALLIB 

;   5 

RAR 

8 

^    j 

8 

ACI 

-^^"—  —i    1 

I   4 

UNIVERSITY  OF  CALIFORNIA 
AT  LOS  ANGELES 


ANNUAL  REPORT  OF 


CHARLES  E.  MAGOON 

Provisional  Governor  of  Cuba 


TO  THE  SECRETARY  OF  WAR 

1907 


WASHINGTON 

GOVERNMENT  PRINTING  OFFICE 

1908 


ANNUAL  REPORT  OF 


CHARLES  E.  MAGOON 

Provisional  Governor  of  Cuba 


TO   THE   SECRETARY   OF   WAR 

1907 


WASHINGTON 
GOVERNMENT  PRINTING  OFFICE 

1908 


14 


^  b 


Jlk3 

\\  ai:  Department, 
Washington,  />.  0.,  January  13,  190 

My  Dear  Mr.  President:  I  herewith  submit  the  report  of  Hon. 
Charles  E.  Magoon,  the  provisional  governor  appointed  by  you  under 
that  part  of  the  Cuban  treaty  known  as  the  Piatt  amendment  tempo- 
rarily to  administer  the  affairs  of  the  Republic  of  Cuba.  The  reporl 
is  a  most  interesting  one  and  shows  the  conditions  in  Cuba  to  be  yery 
encouraging. 

Governor  MagooD  has  conducted  matters  in  a  most  clear-headed  ;ui<l 
tactful  way,  and  with  conspicuous  success.  He  has  carried  on  his 
shoulder-  the  whole  burden  and  responsibility  of  an  extensive  gov- 
ernment. He  has  successfully  handled  numerous  important  economic 
questions,  including  the  work  of  planning  and  initiating  a  system  ^( 
wagon  roads  coextensive  with  the  island,  and  other  long-needed 
improvements.  He  has  had  labor  troubles,  which,  through  his  con- 
ciliatory but  impartial  attitude,  have  been  brought  to  an  end.  He  has 
dealt  with  the  two  parties  in  such  a  way  that,  when  1  visited  the  island 
in  April  of  last  year,  the  representatives  of  all  of  the  parties  virtually 
agreed  upon  a  program  set  forth  in  a  letter  which,  after  submitting 
it  to  you  for  approval,  I  wrote  to  Governor  Magoon  for  publication. 
This  directed — 

First.    The  taking  of  an  electoral  census  of  the  island. 

Second.  The  testing  of  the  tranquillity  of  the  island  and  the  capacity 
for  the  exercise  of  political  franchise,  without  disturbance,  by  the 
holding  of  municipal  and  provincial  elections. 

Third.  After  a  period  varying  from  three  to  six  months,  the  hold- 
ing of  a  Congressional,  Senatorial,  and  Presidential  election. 

Fourth.  The  delay  for  four  months,  in  order  to  comply  with  the 
constitution,  for  the  completion  of  the  Presidential  election  and  the 
installation  of  the  President  and  Congress. 

It  was  hoped  by  -oine  ilia!  the  census  might  be  completed  in  Sep- 
tember last.  I  did  not  think  so,  and  I  am  not  at  all  surprised  to  learn 
that  the  census  has  not  yet  been  completed  and  probably  will  not  he 
until  April  or  May.  This  will  postpone  the  local  elections  until  dune. 
the  Presidential  election  until  December,  and  the  installation  of  the 
President  and  <  longress  and  the  turning  over  of  the  island  until  about 
March  or  April  of  1909.  This  is  in  compliance  with  our  promise  when 
we  assumed  temporary  control  of  Cuba,  and  it  seem-  to  me  that  we 
ought  to  allow  nothing  to  interfere  with  carrying  out  that  promise. 
There  are  important  interests  that  would  be  glad  to  delaj  our  staj 
there  for  years,  but  good  faith  and  good  policy  both,  in  my  judgment, 

require  us.to  leave  at  the  time  appointed. 

Sincerely,  yours.  \\M.    1 1.   Tut. 

.    The  President. 

173790 


ANNUAL  REPORT  OF  THE  PROVISIONAL  GOVERNOR  OF  CUBA. 


Republic  of  Cuba, 
Under  the  Provisional  Administration 

of  the  United  States. 

Office  of  the  Goykkmh:. 
Habana,  Cuba,  December  1,  1907. 

Sir:_I  have  the  honor  to  transmit  the  animal  reports  of  the  acting 
secretaries  of  the  several  departments  of  the  Government  of  Cuba, 
presented  by  them  to  the  provisional  governor. 

T  take  advantage  of  this  opportunity  to  submit  also  a  statement  of 
the  workings  of  the  provisional  administration  of  the  Government  of 
Cuba  during  the  time  I  have  occupied  the  position  of  executive  head 
of  that  Government. 

The  events  leading  up  to  and  requiring  the  establishment  of  the 
provisional  administration  are  now  well-known  historical  incident-. 
and  were  fully  reported  to  the  President  of  the  United  States  by 
you  during  the  time  you  were  the  provisional  governor  of  Cuba,  and 
therefore  repetition  is  unnecessary. 

It  seems  appropriate  at  this  time  to  reiterate  the  genesis  and  legal 
stat  us  of  the  exist  ing  administration  of  the  Government  of  Cuba. 

As  a  result  of  the  war  for  independence  waged  by  the  Cuban  people 
and  the  Spanish-American  war  the  sovereignty  of  Spain  was  with- 
drawn from  the  island  and  the  military  government  was  established. 
When  the  time  arrived  for  the  withdrawal  of  the  military  govern- 
ment and  the  establishment  of  the  now  Republic  of  Cuba,  it  became 
necessary  to  secure  recognition  from  the  governments  of  the  earth 
of  the  independent  sovereignty  of  the  new  Republic  and  the  consent 
of  those  governments  to  its  admission  into  the  family  of  nations 
with  equality  of  right  as  to  international  relations.  Thereupon  it 
became  advisable  for  the  United  States  to  guarantee  the  preserva 
tion  of  Cuban  independence,  the  maintenance  of  a  government  in 
the  island  adequate  for  the  protection  of  lib',  property,  ami  indi- 
vidual liberty  and  the  discharge  of  the  obligations  imposed  by  the 
treaty  of  Paris. 

The  matter  was  presented  to  the  Cuban  constitutional  convention, 
then  in  session,  and  provisions  well  adapted  t<>  accomplish  the  desired 

(5) 


6 

end  were  made  a  pari  of  thai  instrument.  This  relation  between 
Cuba  and  the  United  States  is  uol  a  limitation  upon  Its  sovereignty 
:iikI  independence;  it  was  tin-  buttress  by  which  sovereignty  and  in- 
dependence were  protected  and  sustained;  it  is  the  guaranty  by 
which  the  Cuban  Republic  is  assured  of  equality  of  right  and  privi- 
lege in  tli"  assembly  of  na1  ions. 

After  the  Republic  of  Cuba  was  established  and  the  Cuban  Con- 
gress assembled  the  provisions  of  the  constitution  above  referred  to 
and  tli"  other  provisions  of  the  appendix  were  included  in  a  treaty 
with  iIh-  United  States  which  was  duly  celebrated  by  and  with  the 
concurrence  of  the  Cuban  Congress  and  the  treaty-making  powers  of 
the  United  States.  Thereby  the  United  Stan-  accepted  the  powi 
conferred  by  the  Cuban  constitution  and  became  bound  to  discharge 
the  obligation.  The  revolution  of  1906  furnished  an  occasion  for 
the  officials  of  the  Government  of  Cuba,  charged  with  the  responsi- 
bilities of  place  and  power,  to  call  upon  the  United  States  to  perform 
the  obligation  and  exercise  the  authority  conferred  and  accepted  as 
above  described.  The  President  of  the  Republic  of  ( !uba  called  upon 
the  President  of  the  United  States  for  the  performance  of  the  treaty 
obligation.  The  United  States  responded.  President  Estrada  Palma, 
Vice-President  Mendez  Capote,  and  all  the  cabinet  resigned  and  the 
Congress  dispersed.  Manifestly  the  first  thing  to  be  done  was  to  pro- 
vide for  the  administration  of  the  affairs  of  government  and  thereby 
maintain  the  existence  of  the  Cuban  Government  until  the  vacancies 
occasioned  by  the  resignations  could  be  filled.  The  attempt  was 
made  to  fill  these  vacancies  b}T  the  action  of  the  Cuban  Congress,  but 
a  quorum  could  not  be  secured.  The  affairs  of  government  must  be 
administered,  and  therefore  a  provisional  administration  was  estab- 
lished. The  Government  was  not  changed,  but  continued  in  full 
force  and  vigor,  exercising  the  same  sovereignty  and  maintaining 
complete  independence.  There  is  in  Cuba  a  provisional  administra- 
tion, but  the  Government  continues  to  be  that  of  the  independent 
sovereignty  of  the  Republic  of  Cuba. 

The  character  and  scope  of  the  provisional  government  was  set 
forth  in  the  proclamation  of  Secretary  Taft,  by  which  it  was  estab- 
lished : 

To  the  People  of  Cuba: 

The  failure  of  Congress  to  act  on  the  irrevocable  resignation  of  the  Presi- 
dent ef  the  Republic  of  Cuba  or  to  elect  a  successor  leaves  this  country  without 
a  government  at  a  time  when  greal  disorder  prevails,  and  requires  that,  pur- 
suant to  a  request  of  Presidenl  Talma,  the  necessary  step*  he  taken  in  the  name 
and  by  the  authority  of  the  President  of  the  United  States  to  restore  order,  pro- 
tect life  and  property  iii  the  island  of  Cuba  and  islands  and  keys  adjacent 
thereto,  and  for  this  purpose  to  establish  therein  a  provisional  government. 

The  provisional  government  hereby  established  by  direction  and  in  the  name 
of  the  President  of  the  United  States  will  be  maintained  only  long  enough  to 


/ 

restore  order  and  pence  and  public  confidence,  and  then  to  hold  such  elections 
as  may  be  necessary  to  determine  those  persons  upon  whom  the  permanent  Gov- 
ernment of  the  Republic  should  be  devolved. 

In  so  far  as  is  consistent  with  the  nature  of  a  provisional  government,  estab- 
lished under  authority  of  the  United  States,  this  will  be  a  Cuban  government, 
conforming,  as  far  as  may  be,  to  the  constitution  of  Cuba.  The  Cuban  flag  will 
be  hoisted  as  usual  over  the  Government  buildings  of  the  island.  All  the  execu- 
tive departments  and  the  provincial  and  municipal  governments,  Including  that 
of  the  city  of  Habana,  will  continue  to  be  administered  as  under  the  Cuban 
Republic.  The  courts  will  continue  to  administer  justice,  and  all  laws  not  in 
their  nature  inapplicable  by  reason  of  the  temporary  and  emergent  character  of 
the  Government  will  be  in  force. 

President  Roosevelt  has  been  most  anxious  to  bring  about  peace  under  the 
constitutional  Government  of  Cuba,  and  has  made  every  endeavor  to  avoid  the 
present  step.    Longer  delay,  however,  would  be  dangerous. 

In  view  of  the  resignation  of  the  cabinet,  until  further  notice  the  heads  of  all 
departments  of  the  central  government  will  report  to  me  for  Instructions,  in- 
cluding Maj.  (Jen.  Alejandro  Rodriguez,  in  command  of  the  Rural  Guard  and 
other  regular  Government  forces,  and  Gen.  Carlos  Roloff,  treasurer  of  Cuba. 

Until  further  notice  the  civil  governors  ami  alcaldes  will  also  report  to  me  for 
instructions. 

I  ask  all  citizens  and  residents  of  Cuba  to  assisl  in  the  work  of  festering 
order,  tranquillity,  and  public  confidence. 

Wm,  II.  Taft, 
Secretary  of  War  of  the  United  states, 

Provisional  Governor  of  Cuba. 

Habana,  September  29,  1906. 

The  greater  portion  of  the  affairs  with  which  the  provisional 
administration  was  called  upon  to  deal  can  be  conveniently  grouped 
as  political,  economic,  legislative,  miscellaneous,  and  administrative. 


POLITICAL  CONDITION. 
CAUSE  OF   REVOLUTION. 

During  the  administration  of  President  Palma   there  were  three 
political   parties,   the   Moderate   party    (at  first    called    Republican 
party),  the  National  party,  and  a  small  Independent   Radical   party 
Each  of  these  parties  was  composed,  in  large  part,  of  groups  with 
recognized  leaders;  that  is  to  say,  the  personal  following  of  ;i  Datura! 
leader.    For  a  little  more  than  three  years  President  Palma  declined 
to  affiliate  wit  It  either  of  these  parties  and  endeavored  t<>  distribute 
the  patronage  and  governmental  benefits  equally,  or  ratably,  betwt 
them.     The  contest   between   these   parties    for  political   supremacy 
became  intense.    There  was  an  especial  effort  on  the  pari  <>f  each  on< 
to  control  the  Cuban  Congress  and  tin-  rivalry  made  it   difficult  to 
secure  legislative  action,  even  as  to  much  needed  legislation. 

The  constitution  of  the  Republic  of  ( Juba  requires  that  no!  only  on 
the  assembling  of  Congress,  but  at  the  opening  of  the  daily  sessions, 


• 

there  must  be  u  ittendance  of  at  least  two-thirds  of  the  total  mem- 
bership. N<>  measure  for  compelling  the  attendance  of  tin-  meml 
of  Congress  bad  been  provided, and  therefore  it  waa  easy  to  prevent 
n  quorum.  In  securing  a  remedy  for  this  evil,  President  Palms  de- 
termined to  a ffii Hate  with  the  Moderate  party,  hoping,  with  the  aid  of 
the  powers  of  the  Executive  branch  of  the  Government,  to  secure 
two  thirds  or  more  of  the  Congress  who  could  l>»-  relied  upon  to  enact 
laws  and  measures  which  he  deemed  essential  or  advantageous.  The 
Nationals  then  coalesced  with  n  number  of  disaffected  Moderates 
and  formed  t In*  Liberal  party,  which  was  also  joined  by  the  former 
Radicals.  Several  National  leaders,  however,  refused  to  enter  the 
combination,  bul  maintained  independent  organizations,  retaining 
the  old  name  of  "  Nationals."  Opon  President  Palma's  affiliation 
Avith  the  Moderate  party,  the  policy  was  adopted  of  displacing  Lib- 
erals from  official  positions — national,  provincial,  and  municipal — 
throughout  the  island.  filling  their  places  with  members  of  the  Mod- 
erate party.  This  embittered  the  opposition  to  the  Administration. 
When  the  time  for  elections  approached  the  Liberals  made  nomina- 
tions for  all  the  offices  and enterer upon  a  vigorous  campaign.  The 
Independent  Nationals  favored  the  reelection  of  President  Palma, 
and  locally  combined  with  the  Moderates.  All  the  powers  of  the 
Executive  branch  of  the  Government  were  utilized  to  secure  the  suc- 
cess of  the  Moderate  party  in  the  national,  provincial,  and  municipal 
elections,  and  measures  were  taken  of  such  kind  and  character  as  to 
create  a  belief  in  the  minds  of  a  large  number  of  the  electors  that  the 
laws  had  been  violated,  the  constitution  subverted,  the  rights  of  citi- 
zens invaded,  and  the  character  of  the  Government  changed:  in  other 
words,  that  recourse  had  been  had  to  unlawful  exercise  of  power  and 
perpetration  of  gross  injustice  to  such  an  extent  as  to  vitiate  the 
election-.  This  belief  led  to  the  revolution,  and  the  investigation 
of  the  Peace  Commission  established  that  the  belief  was  well  founded. 

INTERVENTION — PROVISIONAL    ADMINISTRATH  >N    ESTABLISHED. 

The  inability  of  the  Administration  to  successfully  cope  with  the 
revolution  induced  President  Palma  to  invoke  the  exercise  by  the 
United  State-  of  the  powers  conferred  upon  that  Government  by 
article  3  of  the  appendix  to  the  Cuban  constitution  and  accepted  by 
the  United  States  and  continued  by  the  Republic  of  Cuba  by  the 
treaty  between  the  two  Governments.  In  response  to  the  call  of  the 
President  of  the  Republic  of  Cuba  and  pursuant  to  said  treaty  obli- 
gation, the  President  of  the  United  State-  created  a  Peace  Commis- 
sion, composed  of  Hon.  William  II.  Tat't.  Secretary  of  War,  and  Hon. 
Robert  Bacon.  Assistant  Secretary  of  State,  and  >ent  them  to  Cuba 
to  investigate  the  situation  and  attempt  to  restore  peace  and  reestab- 
lish law  and  order.     Upon  the  arrival  of  the  Commission  in  Cuba  the 


9 

President  of  the  Republic  communicated  to  them  his  intention  i<>  re- 
sign his  office.  The  members  of  the  cabinet  tendered  their  resigna- 
tions to  President  Palma,  and  the  same  were  accepted  by  him.  The 
President  sent  his  resignation  to  the  Cuban  Congress,  then  assembled 
in  Habana.  The  ^ice-president  also  resigned.  The  Congress  dis- 
solved  without  filling  either  vacancy.  Thereupon,  the  President  of 
the  United  States,  by  virtue  of  the  authority  conferred  by  the  Cuban 
constitution  and  the  existing  treaty  between  Cuba  and  the  United 
States,  appointed  Hon.  William  II.  Taft  provisional  governor  of  the 
Republic,  thereby  insuring  the  maintenance  of  constitutional  govern 
ment.  international  relations,  and  a  mean-  of  preserving  law  and 
order. 

The  Peace  Commission,  during  the  course  of  its  investigation,  de- 
termined upon  way-,  and  mean-  for  settling  the  existing  controversies 
between  the  several  faction-  into  which  the  people  were  divided. 
These  terms  and  conditions  were  embodied  in  a  letter  to  President 
Palma  and  were  also  submitted  to  the  national  committees  of  each 
of  the  three  important  political  organizations.  President  Palma 
and  the  Moderate  party  declined  to  accept  the  conditions:  the  Inde- 
pendent National  party  approved  of  the  general  plan  proposed,  but 
requested  certain  modifications;  and  the  Liberal  party  accepted  the 
proposal    without    modification. 

The  plan  of  the  Peace  Commission  was  as  follow-: 

First.  The  resignation  <>f  the  vice-president,  .-ill  the  senators  and  repres"iit- 
atives.  governors,  and  provincial  councilors,  elected  December,  1905. 

Second.  The  laying  down  <>f  the  arms  of  the  insurgents  on  the  signing  of 
this  compromise  and  the  presentation  of  these  resignations. 

Third.  The  provision  by  law  for  a  commission  to  consist  of  three  lawyers 
whose  names  were  to  he  selected  by  tlie  Moderate  party,  three  t<>  be  selected 
by  the  Liberal  party,  and  one  bj  the  Presidenl  <>t'  the  Uuited  States,  for  the 
purpose  of  dra £1  Ing  laws. 

Fourth.  The  holding  of  elections  on  January  1,  moy,  under  the  provisions 
of  the  electoral  law  dratted  bj  such  commission. 

On  the  6th  day  of  October.  1906,  the  President  of  the  United  States 
designated  the  writer  a-  provisional  governor  of  the  Republic  of  Cuba 
and  directed  him  to  proceed  to  Cuba  and  assume  the  duties  of  -aid 
office.  Pursuant  thereto  the  writer  was  inducted  into  office  on  the 
13th  day  of  October,  1906,  and  issued  the  following  proclamation : 

*  Acting  upon  the  authoritj  conferred  upon  him  bj  the  appendix  to  the  .-. insti- 
tution <>f  Cuba,  i>.\  the  treats  between  the'Uuited  states  and  Cuba  ratified  July 
1,  1904,  and  by  the  act  of  Congress  of  the  [Jutted  States  approved  March  2,  1901, 
the  President  of  .the  [Jnited  states  bas  appointed  me  provisional,  governor  of 

Cuba,  to  succeed  the  1 1<  hi.  William   II.  'fall,  and   I   bereby  assume  tha.t  office. 

'fhe  policy  declared  and  the  assurances  given  by  uij    predecessor,  Secretary 

Taft,   will   he  strictly   adhered   to  and   carried   out. 

As  provisional    governor,    I    shall   exercise   the   powers   and    perforin    the  duties 

contemplated  and  provided  for  by  the  third  article  of  the  appendix  to  the  con- 


V) 

siimii f  Cuba,  for  the  preservi  Independence  and  for  the  pro- 

tection of  life,  property,  and  Individual    Iberty. 

As  boob  at  ii  sh.-iii  prove  i"  i onslstent  with  the  attainment  <>(  these  ends 

i  shall  Beek  i"  bring  about  1 1 > « *  restoration  ol  the  ordinary  agencies  :m<i  Methods 
of  government  nnder  the  other  and  general  provisions  of  the  Cuban  constitution. 

All  provisions  of  the  constitution  and  laws  the  application  of  which  for  the 
time  being  would  be  Inconsistent  with  the  exercise  of  the  powers  provided 

by  the  third  article  of  the  apj <ii\  must  be  deemed  <<>  be  In  abeyance.     \ 

other  provisions  of  the  constitution  i  i  ontinne  In  full  force  and  effe 

ill  CTIONS       ill      HON    i  It.M  D8. 

Prior  (o  the  departure  of  Secretaries  Taft  and  Bacon  from  Cuba 
a  question  arose  as  to  the  advisability  of  holding  the  elections  at  the 
time  set  forth  in  the  plan  of  settlement.  Conferences  were  held  with 
the  loaders  of  the  political  organizations  and  many  other  prominent 
and  influential  citizens,  and  by  common  consent  and  agreement  it  was 
decided  to  postpone  said  election-  until  the  close  of  the  season  in 
which  the  tobacco  and  sugar-cane  crops  are  harvested.  This  post- 
ponement, by  mutual  agreement,  insured  the  peace  and  tranquillity 
of  the  island  during  the  harvest  season  and  afforded  the  provisional 
administration  opportunity  to  investigate  the  numerous  charges  made 
by  the  Liberals  and  the  revolutionary  committee  as  to  the  improper 
exercise  of  the  powers  of  the  executive  branch  of  the  Palma  Admin- 
istration, wherein-  that  administration  -ought  to  perpetuate  itself  in 
place  and  power. 

These  charges,  in  general,  were  that  the  municipal  officials  in  many 
municipalities  having  a  Liberal  majority  had  been  displaced  and  sub- 
stituted by  Moderates:  that  members  of  the  Liberal  party  were  ex- 
cluded from  practically  all  of  the  appointive  offices  of  the  Govern- 
ment, and  that  the  Rural  Guard  had  been  converted  into  a  political 
agency  for  accomplishing  the  purposes  of  the  Moderate  party. 

The  Peace  Commission  determined  that  the  Liberal  party  was  en- 
titled to  and  should  receive  equitable  representation  in  the  public 
service  of  the  national  government.  The  Liberals  desired  and  re- 
quested that  a  sufficient  number  of  Moderates  should  be  displaced  and 
their  places  filled  by  Liberals  to  secure  such  representation  imme- 
diately. The  Peace  Commission  rejected  this  suggestion  and,  instead, 
adopted  the  policy  of  appointing  Liberals  to  fill  vacancies  as  they 
occurred. 

The  Peace  Commission  concluded  its  labor-  and  Secretary  Taft  re- 
tired from  office  of  provisional  governor  at  noon  October  13.  1906, 
and  on  the  afternoon  of  the  same  day  embarked  for  the  United  States. 

The  people  of  Habana  forgot  their  political  differences,  and  taking 
thought  of  the  fact  that  the  horrors  of  civil  Avar  had  been  averted, 
all  parties  joined  in  a  demonstration  of  gratitude  and  praise  for  the 


11 

■work  that  had  been  accomplished.  The  shore  of  the  bay  was  lined 
with  thousands  of  cheering  people,  all  available  water  craft 
pressed  into  service  to  escort  the  ships  to  the  mouth  of  the  harbor,  the 
forts  exchanged  salutes  with  the  vessels,  and  amid  cheers  and  all  pos- 
sible display  of  good  "will  the  Peace  Commission  concluded  its  labors. 
The  character  and  extent  of  their  service  is  shown  by  the  resolution 
adopted  by  a  mass  meeting  of  the  American  residents  of  Ilabana.  as 
f  ollows : 

Gentlemen:  The  American  residents  tn  Cuba;  temporarily  organized  Cor  the 
purpose  of  making  known  t<>  you  their  situation  and  n< sslties  in  connection 

with  the  rei-eiit  dist 1 1 ri in nees.  desire  to  express  to  you  their  high  appreciation 
of  the  great  services  your  wise  and  prudenl  measures  have  seemed  to  rheni 
and  to  all  the  people  of  Cuba. 

The  results  yen  have  accomplished  are  greater  than  could  have  reasonably 
been  hoped  for  at  the  time  of  your  arrival.  Nearly  30,000  armed  Dien,  moved 
by  the  most  intense  and  bitter  passions,  were  then  arrayed  againsl  the  armed 
forces  of  the  Governmenl  and  a  disastrous  conflicl  was  imminent,  in  which 
enormous  loss  of  life  and  property  would  have  been  inevitable.  It  scar 
seemed  possible  thai  these  angry  elements  of  discord  and  strife  could  be  brought 
into  peaceful  and  orderly  citizenship  without  bringing  into  active  service  the 
military  power  at  your  command  to  compel  a  cessation  of  the  struggle  for 
supremacy  between  the  contending  forces.  Bui  in  less  than  one  month  the 
wise  and  sagacious  methods  you  pursued  and  the  skill  and  adroitness  with  which 
you  approached  the  difficull  task  committed  to  your  charge  have  broughl  1 1 
and  quiet  to  Cuba.  Warlike  conditions  have  vanished,  with  no  immediate  prob- 
ability of  their  resumption.  The  armed  forces  have  surrendered  their  arms 
and  most  of  them  are  already  in  their  fields  and  simps  engaged  in  peaceful 
industry. 

Not  the  leasi  satisfactory  to  the  considerations  involved  is  the  fact  that  in 
the  settlement  of  the  turbulenl  conditions  11. at  prevailed  you  have  caused  hut 
little  irritation  or  resentment,  and  have  secured  from  the  Cuban  people  in- 
creased respect   and  regard   for  the  Tinted  states  and  greater  confidence  and 

trust  in  the  good  will  and  wishes  of  the  American  | pie  for  the  people  of  Cuba 

ami  their  future  welfare. 

We  do  not    believe  that    so   successful   and   speedy   an   achievement    under  Con- 
ditions so  difficult  and  dangerous  has  any  parallel.    And  the  thanks  and  grati- 
tude of  the  people  of  Cuba,  as  well  as  of  the  greal  people  you  represent,  are 
to  you  for  these  inestimable  services. 

Wishing  ymi  a  safe  return  to  the  United  states  and  ii njoymenl  of  bigher 

lienors   in   the   future,   we  are. 

Sincerely  yours,  s.  s.  n  ibvey, 

II.  B.  II  \u  WS, 

Wm.  Hi  i.iii  s, 
H.  w.  Baker, 
I  >r.  C.  <  'i  ii  i  ord  Kyi'i  r, 

A  i  i  in  n    LlB<  OMB, 

W.  Robi  ki  s. 

WM.  B.  Him  . 

.i.  i ■:.  B  mm  ow  . 

i  'has.  1 1  18BBOOK, 

Committi  • . 


12 

The  complete  success  of  the  Peace  Commission  has  no**  become  a 
matter  <>l  historj .  and  in  the  interests  of  history  I  insert  ;i  letter  writ- 
ten by  President  Palma  to  a  personal  friend  on  October  LO,  L906. 
This  letter  was  published  recently  in  the  newspapers  of  rlabana,  and 

:  i     follows : 

Mi    \ii:i    esteeb bieno :    I   dictate  these  lines  impelled   by  a   sentiment 

wlMeh  elevates  and  makes  happy     the  sentlmenl  <>f  gratitude.    This  sentiment 

is  Btrong  wiiiii wiini   i   read  your  letter  of  the  6th.     in  the  unbalanced 

Btate  of  Bociety  in  Cuba  to-day  and  in  the  midsl  of  the  confused  noise  of  a  l>»\v 
mob,  n  is  pleasanl  and  strengthening  ti>  receive  testimony  of  approval  and  sym- 
pathy from  Buperlor  spirits  who  are  capable  of  comprehending  acts  of  .-it ga- 

tlon  and  disinterest,  inspired  bj  the  purest  love  of  country,  tn  complying  with 
my  public  and  private  duties,  especially  on  difficult  occasions,  I  have  never 
evaded  the  grave  responsibilities  imposed  mi  me  by  circumstances.  I  have  as- 
sumed them  without  vacillation  with  the  courage  and  resolution  of  a  clear 
conscience,  foreign  to  any  personal  interest,  and  moved  only  by  a  sensible, 
upright,  and  true  patriotism.  Lei  those  who  willfully  hide  the  reality  of 
mutters  to  themselves  join  in  censurable  chorus  with  tin-  ignorant,  boastfully 
clamoring  of  patriotism.  I  am  satisfied  with  the  conviction  of  having  saved 
my  beloved  country  from  a  horrible  demoralization,  of  having  saved  it  from 
anarchy  and  its  necessary  concomitants,  ruin  and  pillage. 

From  the  tirst  days  of  the  insurrectionary  movement  I  understood  the  situa- 
tion and  was  aide  to  appreciate  it  with  a  serene  mind.  I  saw  ln-fore  me  numer- 
ous masses  tired  of  the  order  and  legality  to  which  they  appeared  to  have 
submitted  during  the  four  years  of  the  Republic;  eager  for  license  and  forays, 
follow  like  a  mob  the  first  adventurer  who  Invited  them  to  rise:  i  saw  every- 
where persons  who  sympathized  with  disorder  and  encouraged  disturbance;  1 
saw  the  press  in  the  morning,  afternoon,  and  at  all  hours  assisting  with  tin- 
paralleled  cynicism  the  secret  conspiracy  organized  in  behalf  of  the  rebels:  I 
suddenly  found  myself  in  the  midst  of  a  tremendous  social  disorganization,  with 
thousands  id'  insurgents  in  three  provinces  and  the  menace  of  rebellion  in  two 
others,  without  sufficient  regular  forces  to  undertake  immediately  an  active 
campaign  against  the  former  and  to  heat  and  disorganize  them;  at  the  same 
time  I  constantly  feared  that  they  would  carry  to  the  great  sugar  plantations  of 
Santa  Clara  the  measures  of  destruction  already  realized  on  railroad  stations, 
locomotives,  bridges,  culverts,  etc:  I  saw  the  customs  revenues  fall  off  by  one- 
half  and  the  other  income  of  the  State  to  25  or  •':<>  per  cent,  and  that  the  millions 
of  the  treasury  were  being  spent  in  streams  with  uncertain  result  and  to  very 
doubtful  advantage,  a  large  part  being  \\^-(]  for  keeping  up  hastily  improvised 
militia,  which  for  that  very  reason  could  not  inspire  Sufficient  confidence  as  to 
their  reliability  for  undertaking  the  labor,  the  privations,  and  the  dangers  of  a 
constant  persecution  of  adversaries,  who  were  also  Cubans  and  in  a  great  num- 
ber of  cases  friends  and  comrades.  In  the  meantime,  like  a  preconceived  slo- 
gan, there  resounded  day  after  day  in  all  quarters  the  threatening  demand  for 
■•  Peace  at  any  cost."  with  the  tendency  of  obliging  the  Government  to  submit  to 
whatever  humiliation  might  be  required,  nor  did  anyone  stop  to  think  how  im- 
possible tl*e  realization  of  Hie  conditions  was  in  practice,  or  consider  the  serious 
consequences  of  such  a  course  in  the  future.  To  these  reflections  I  might  add 
'•other  unfavorable  circumstances  id'  greal  seriousness"  as  to  which,  neverthe- 
less, I  must  remain  silent  because  of  their  personal  nature. 

The  situation  therefore,  from  the  Cuban  standpoint,  presented  the  following 
dilemma:  On  the  one  hand  the  necessity  of  putting  down  the  Insurrection  by 
force  of  arms;  on  the  other  that  of  making's  compact  with  the  insurgents. 


13 

It  is  easy  to  express  the  firsl  course  in  a  few  words,  but  its  complete  realiza- 
tion was  a  difficult  matter,  as  may  be  judged  from  what  I  Lave  said  a  Dove.  At 
all  events  ii  would  have  required  a  period  of  several  months,  greal  effusion  ot 
blood,  loss  of  life,  destruction  of  property,  and  the  consumption  of  the  millions 

put  aside  for  works  of  public  utility,  only  to  leave  deeply  rooted  in  the  country 
the  hatred  caused  by  civil  war,  ready  t<>  break  out  again  whenever  a  favorable 
opportunity  arose.  My  humane  sentiments  of  Christian  civilization,  the  attach- 
ment I  had  tor  the  economies  which  had  been  accumulated  in  the  treasury  by 
resisting  the  opposite  tendency  of  improvident  legislators,  and  the  importance 
of  protecting  lives  and  property  of  Cubans  and  foreigners  during  the  armed 
Struggle  made  me  reject  this  course,  which  was  further  subject  to  having  the 
Washington  Government,  already  preparing  forces  in  the  smith  <>f  the  United 
States,  believe  at  any  moment   that   it  was  time  to  intervene. 

The  course  of  making  a  pact  with  the  Insurgents  in  arms  was  the  worst  which 
could  lie  considered.  Even  supposing  that  the  different  rebel  leaders  ami  the 
directors  and  instigators  of  the  movement  arrived  at  an  understanding  among 
themselves  and  that  they  agreed  with  the  Government  upon  the  fundamental 
liases  fm-  terms  of  settlement,  the  secondary  problems  which  would  afterwards 
arise   would   lie  so   many   and   so  dillicult    to  decide,    in    view   of   the  weakened    if 

not  lost  moral  force  of  the  legitimate  authorities  and  in  the  absence  of  other 
authority  that  mi.Lrht  settle  differences,  these  problems  would.  I  repeat,  be  so 
many  and  so  dillicult  that  they  would  cause  the  country  to  remain  for  many 
months  in  constant  agitation,  with  results  as  pernicious  as  war  itself.  From  the 
moment  the  Government  treated  with  the  rebels  it  placed  itself  , ,11  an  inclined 
plane  of  interminable  concessions,  initiating  an  era  of  successive  insurrections, 
and  putting  the  stability  of  future  governments  on  a  frail  basis.  1  could  never 
consent  to  be  an  accomplice  in  such  evil  in  exchange  for  being  permitted  to 
continue  to  occupy  the  Presidential  chair  of  the  Republic,  humiliated  and  its 
prestige  taken  away  by  the  requirements  of  the  insurrection,  and  in  a  situation 
in  which  it  would  have  been  impossible  for  me  to  give  my  country  the  services 
which  my  high  and  disinterested  aspirations  desired. 

No,  by  no  means,  neither  one  course  nor  the  other  in  the  dilemma:  neither 
answer  war  with  war.  nor  degrade  my  authority  as  the  legitimate  chief  of  Stale 
and  my  personal  dignity  by  submitting  to  the  exactions  of  armed  men.  lacking 
all  social  prestige,  lacking  principles  and  ideals,  the  instruments  of  a  number 
of  ambitious  men  without  pity  who  were  astute  enough  to  remain  aloof  while 
they  sent  forth  against  the  defenseless  community  those  Ignoranl  masses  ready 
tor  pn lap'  and  disorder. 

When  I  saw  the  insurrection  take  serious  proportions  my  soul  was  overcome 
with  profound  disenchantment,  contemplating  the  patient  ami  glorious  work  of 
four  years  Overthrown;  and  I  irrevocably  resolved  to  resign  the  presidency,  to 
completely  abandon  public  life,  and  to  seek  in  the  bosom  of  my  family  the  cer- 
tain refuge  agamsl  so  many  deceptions.     Bui  before  carrying  ou1  this  intention, 

so  grateful  to  my  desires,  il  was  absolutely  necessary  to  make  a  last  sacrifice  on 
the  altar  of  my  country.  Il  was  not  possible  that  I  leave  the  Government  in 
criminal   hands;    in   the  hands  of  those  who  had  dealt  a    fatal   blow  to  the  credit 

of  the   Republic  and   the  good   name  of  the  Cuban    ] pie.      The  conscience  of  a 

Superior  duty  (one  of  those  duties  which  cause  the  heart  to  bleed  and  give 
to  unpopularity  and  hate)  imposed  upon  me  as  the  only  measure  of  salvation, 
the  necessity  of  acquainting  the  Washington  Government  with  the  true  situ- 
ation of  the  country  and  with  the  lack  of  means  of  my  Government  to  give  pro- 
tection to  property,  and  to  say  that  I  considered  that  an  occasion  had  arisen  for 
the  United  States  to  make  us.'  of  the  right  granted  them  by  the  Piatt  amend 
nient.      I  did  so.  consulting  few  people,  since  it   was  not  a   time  to  expose  mv 


\\ 

to  contradiction  In  order  i<>  seek  partners  in  iiiis  responsibility,  i>ui  t..  assume 
the  responsibility  entirely,  with  the  firmness  of  a  legitimate  conviction  and  the 
courage  which  always  accompanies  acta  Inspired  In  the  most  sterling  patriotism. 
Whether  I  did  well  or  qoI  time  will  decide.  Meanwhile  my  attitude  is  justi- 
fied by  my  decree  of  September  it,  which  virtually  pul  an  end  to  the  war 
actly  one  month  after  it  bad  begun,  thus  avoiding  further  bloodshed  and  loi 
life;  it  Is  also  Justified  by  the  fact  thai  the  Insurgents  are  already  disarmed  and 
returning  to  their  bomes,  tranquillity  having  been  reestablished,  guaranteed  by 
the  moral  and  materia]  force  of  American  authority.  Ordinary  occupations 
maj  be  followed  once  more  wlthoul  fear,  and  it  is  to  be  supposed  thai  the  nexl 
sugar  .-mil  tobacco  crops  will  begin  to  restore  economic  prosperity,  unpaired  by 
the  crisis.  As  to  politics,  I  venture  to  predlcl  nothing,  neither  as  regards  the 
parties  nor  as  to  the  probable  resull  of  the  Intervention. 

I  have  always  believed  since  the  time  I   took  active  part   in  the  t<-:i  years'  war 

that  independence  was  not  the  final  ^roal  of  all  our  noble  and  patriotic  aspira- 
tions. The  aim  was  to  possess  a  stable  government,  capable  of  protecting  lives 
and  property  and  of  guaranteeing  to  all  residents  of  the  country,  natives  and 
foreigners,  the  exercise  of  natural  and  civil  rights,  without  permitting  liberty 
ever  to  become  pernicious  license  or  violent  agitation,  to  say  nothing  of  armed 
disturhances  of  public  order.  I  have  never  feared  to  admit,  nor  am  I  afraid 
to  say  aloud,  that  a  political  dependence  which  assures  US  the  fecund  boons  of 
liberty  is  a  hundred  times  preferable  for  our  beloved  Cuba  to  a  sovereign  and 
independent  republic  discredited  and  made  miserable  by  the  baneful  action  of 
periodic  civil  wars. 

T.    ESTHADA     I'ALMA. 

It  required  but  slight  investigation  to  see  that  the  principal  imme- 
diate cause  of  the  uprising  against  President  Palma's  administration 
was  the  interference  with  the  municipalities.  One  of  the  keenest 
and  best  qualified  observers  of  Cuban  affairs  stated: 

That  the  Government  could  have  done  anything  it  saw  fit  to  do  in  Hahana, 
hut  the  attempt  to  convert  Liberal  municipalities  into  Moderate  ones  was  a 
fatal  error. 

The  Liberal  committee  was  called  upon  to  state  which  munici- 
palities had  been  illegally  interfered  with  and  submit  proof.  They 
submitted  a  list  as  follows,  including  therein  several  municipalities 
whose  authorities  had  been  changed  during  the  uprising  on  account 
of  sympathy  with  the  insurgents: 

I'inar  Del  Rio  Province. — Guane,  San  Juan  y  Martinez.  San  Luis,  Conso- 
lacion  del  Sur,  Axtemisa,  Guanajay,  Cabanas,  and  Yiiiales. 

Habana  1'i-orinvc —  BEabana,  Marianao,  Guinea,  Bataban6,  Aguacate,  Alqulzar, 
aud  Guanabacoa. 

Santa  Clara  Province. — Camajuani,  Vueltas,  Placetas,  Yaguajay,  Cala- 
bazar,'  Trinidad,  Cienfuegos,  Rodas,  Lajas,  Banchuelo,  Sagua  la  Graude, 
Santo  Domingo,  Cruces,  Palmira,  Caibarien,  Rancho  Veloz,  and  SanctJ  Spiritus. 

The  committee  stated  that  there  were  other  municipalities  in  the 
Republic  in  which  a  majority  of  the  inhabitants  were  Liberals  and 
in  which  the  officials  should  be  members  of  that  party,  but  that  the 
displacements  had  been  accomplished  in  such  manner  as  made  it 
difficult,  if  not  impossible,  to  present  sufficient  proof  to  justify  action 


on  the  part  of  the  provisional  administration;  therefore,  their  names 

were  withheld. 

Investigation  was  made  as  to  the  municipalities  whose  names  wen- 
presented.  Each  case  was  disposed  of  on  its  own  merits.  As  to 
many  of  them,  the  charges  made  by  the  Liberals  were  admitted;  as 
to  others,  evidence  was  adduced.  Liberal  administrations  were  re- 
established, in  whole  or  in  part,  in  the  following  municipalities: 

Pinar  del  Rio  Province. — Guane,  San  Juan  y  Martinez,  Consolacion  del  Sur, 

and  Guauajay. 

Habana  Province. — Guines,  Aguacate,  Alquizar,  and  Guanabacoa. 

Santa  Clara  Province. — C'ainajnani,  Vueltas,  Placet  as,  Yauu.ij.iy.  C'alabazar, 
Trinidad,  Cienfuegos,  Rodas,  Lajas,  Ranchuelo,  Cruces,  Palmira,  Rancho  Yeloz, 
and  Sancti  Spiritus. 

The  action  of  the  provisional  administration  in  these  cases  was  gen- 
erally approved  and  universally  accepted  without  protest  or  com- 
plaint. 

CREATION    OF    LIBERAL    COMMITTEE. 

The  matter  of  appointing  Liberals  to  positions  in  the  National 
Government  was  one  that  bid  fair  to  give  the  provisional  adminis- 
tration considerable  difficulty.  Party  ties  set  lightly  on  individuals 
in  Cuba.  There  are  few,  if  any,  issues  involving  national  policy  or 
political  principles.  The  individual  voter  gives  allegiance  to  the 
party  which,  at  the  time,  suits  his  inclination,  and  easily  passes  from 
one  party  to  the  other — a  man  may  be  a  Liberal  one  mouth  and  a 
Moderate  the  next,  or  vice  versa,  being  governed  by  the  personality 
of  the  candidate  or  the  local  lea  lers  supporting  a  candidate.  The 
revolution  of  1906  had  many  adherents  who.  at  different  times, 
belonged  to  the  Moderate  and  Independent  parties,  but  had  from  one 
cause  or  another  joined  the  opposition  to  the  Palma  administration. 
It  was  a  practical  impossibility  for  the  provisional  governor  to  deter- 
mine what  persons  were  representative  of  the  class  which  had  been 
excluded  from  office,  or  whose  appointments  would  assist  in  restoring 
equitable  representation.  The  provisional  governor  was  a  stranger 
to  the  country  and  people,  and  without  the  necessary  knowledge. 
Ordinarily  the  requisite  information  would  be  supplied  by  the  mem- 
bers of  the  cabinet,  but  Secretary  Taft  had  ordered  that  the  chief 
clerks  of  the  departments  should  be  the  acting  secretaries,  and.  as 
they  were  either  Moderates  or  Independents,  the  Liberal-  protested 
against  their  being  allowed  to  designate  the  Liberal  representation. 
From  this  situation  there  developed  the  proposal  that  the  committee 
which  had  dealt  with  Secretary  Taft  in  his  successful  endeavor  t" 
secure  the  disbandment  of  the  revolutionary  forces  and  the  restora- 
tion of  tranquillity  should  propose  to  the  provisional  governor  the 
names  of  the  persons   to  fill    vacancies,  as    from   time   to   time   they 


16 

occurred.  This  plan  gave  promise  of  securing  the  desired  result,  for 
the  committee  represented  not  onlj  the  Libera]  party,  but  also  other 
elements  which  constituted  tin-  opposition  and  the  excluded  cla 
The  plan  was  adopted  and  proved  satisfactory.  The  committee,  ae 
originally  constituted,  was  composed  of  the  following  gentlemen: 
Faustino  Guerra,  president;  Eduardo  Guzman,  rice-president;  Er- 
nesto A.sbert,  secretary;  AJfredo  Zayas,  Jose"  Miguel  G6mez,  Juan 
Gualberto  ( r6mez,  Tomas  Recid,  Demetrio  Castillo  I  hiany,  Jose  de  J. 
Monteagudo,  and  <  'm  il  <  >-  Garcia  Velez. 

The  creation  of  this  committee  saved  the  provisional  government 
much  time  and  trouble  and  secured  appointees  \\li<>.  with  very  few 
exceptions,  proved  efficienl  and  generally  acceptable  to  the  public 
The  announcement  was  made  from  the  first  that  officials  would  not  be 
removed  to  make  way  for  Liberals.  This  Was  reluctantly  accepted 
by  the  Liberals,  being  acquiesced  in  as  convenient,  if  not  essential, 
to  the  provisional  administration.  In  this,  as  in  all  other  matters,  the 
Liberal  party  has  shown  a  purpose  and  desire  to  aid  and  assist  the 
provisional  administration  in  carrying  out  the  plan  adopted  by  the 
Peace  Commission,  and  in  securing  an  honest  and  efficient  administra- 
tion, and  in  other  ways  promoting  the  success  of  the  endeavor  in 
which  the  provisional  administration  is  engaged.  The  Moderate  and 
Independent  parties;,  having  practically  dissolved,  were  unable  as  i 
party  to  assist  the  provisional  administration,  but  individually 
many  of  the  members  called  and  offered  their  aid  and  assistance. 
When  the  Conservative  party  was  organized,  a  committee  from  that 
party  called  and  offered  their  assistance  unconditionally  to  the  pro- 
visional government  and  have  been  of  great  help. 

RURAL  GUARD. 

Investigation  of  the  charge  that  the  Rural  Guard  had  been  used  as 
a  political  agency  by  the  Government  showed  the  charge  to  be  true. 
Justice  to  the  Rural  Guard,  however,  requires  that  the  statement  be 
made  that  this  service  was  contrary  to  the  desire  of  a  large  majority 
of  the  officers  and  enlisted  men.  I  am  convinced  that  the  service  was 
distasteful  and  was  performed  under  protest  and  against  their  judg- 
ment and  desire.  There  may  have  been  a  few  who  thought  the  ends 
justified  the  means,  but  by  far  the  greater  number  considered  it  a  dis- 
agreeable service  which  they  were  constrained  to  perform  because  it 
was  imposed  upon  them  by  the  obligation  of  military  service.  The 
purpose  of  the  Rural  Guard  is  indicated  by  it-  name,  and  the  field  of 
their  operation  was  intended  to  be  outside  of  the  municipal  zones,  or 
inhabited  portions  of  the  municipalities  (towns).  Within  the  mu- 
nicipal zone  the  municipal  police  should  have  exercised  the  police 
powers.    For  various  reasons — among  them  the  small  number  of  po- 


17 

licemen,  inefficiency  resulting  from  political  appointment-,  etc,  but 
largely  because  of  the  political  influence  which  they  might  exercise — 
the  Rural  Guard  gradually  supplanted  the  municipal  police  within 
the  municipal  zones.  This  unwarranted  exercise  of  police  author- 
ity by  the  Rural  Guard  in  all  localities  throughout  the  island 
brought  the  guard  into  disfavor.  The  Rural  Guard  force  was  not 
sufficient  to  police  the  towns  and  rural  districts  and  the  rural  <li-t  i 
were  largely  neglected.  This  added  to  the  disfavor  of  the  guard  and 
in  no  small  measure  afforded  the  opportunity  for  fomenting  revolu- 
tionary sentiment  and  the  assembling  of  insurgent  bands  which, 
when  joined  together,  constituted  the  revolutionary  fore 

The  operation  of  the  Rural  Guard  against  the  insurgents  was 
greatly  hampered  by  the  desire  of  the  Government  to  afford  ade- 
quate protection  to  the  towns,  especially  the  city  of  Habana.  and.  if 
possible,  to  avoid  armed  conflict,  with  resulting  loss  of  life,  and  amus- 
ing of  passion  and  animosities  which  battles  engender.  This  resulted 
in  a  loss  of  prestige  which  was  keenly  felt  by  the  guard  and.  at  that 
time,  the  esprit  de  corps  was  at  a  low  ebb  and  danger  of  further  de- 
moralization existed.  In  addition  to  using  the  guard  as  a  political 
agency,  the  Government  had  also  made  numerous  promotions  in  the 
service  as  reward  for  political  activity  or  because  of  political  influ- 
ence.   On  the  whole  the  guard  was  in  a  bad  way. 

The  Rural  Guard  was  organized  under  the  military  government 
of  Cuba  established  by  the  United  States  at  the  close  of  the  Spanish- 
American  war.  The  officer  in  charge  of  the  organization  at  that  time 
was  Maj.  Herbert  J.  Slocum,  then  in  the  Seventh  Cavalry,  U.  S. 
Army.  Major  Slocum  was  <  lei  ailed  for  service  with  the  provisional 
administration  and  assigned  to  duty  as  adviser  to  Maj.  Gen.  Ale- 
jandro Rodriguez,  commanding  the  armed  forces  of  Cuba.  1  [e 
requested  and  received  the  assistance  of  Maj.  Henry  A.  Barber,  1".  S. 
Army  (retired),  and  Capts.  Powell  Clayton,  jr..  Eleventh  Cavalry; 
George  C.  Barnhardt,  Fifteenth  Cavalry:  Andrew  J.  Dougherty, 
Thirtieth  Infantry,  and  Edmund  Wittenmyer,  Fifth  Infantry.  'I 
officers  entered  upon  the  work  of  reorganizing  and  restoring  the 
guard  to  its  original  efficiency. 

The  Rural  Guard  consists  of  three  regiments  with  headquarters  at 
Habana,  Matanzas,  and  Santiago.  Each  regiment  is  charged  with 
policing  two  provinces.  Capt,  Powell  Clayton  was  detailed  as  ad 
viser  to  Col.  Emilio  Avalos.  commanding  the  Firs!  Regiment,  which 
is  charged  with  policing  Habana  and  Pinar  del  Rio  provinces,  with 
headquarters  at  Habana;  Capt.  Edmund  Wittenmyer  was  detailed  as 
adviser  to  Col.  Manuel  Antonio  Martinez,  commanding  the  S 
Regiment,  with  headquarters  at  Matanzas,  and  charged  with  policing 
the  provinces  of  Matanzas  and  Santa  (lata:  and  Capt.  Andrew  J. 
Dougherty  was  detailed  a-  adviser  to  ( Jol.  Saturnino  Lora,  command- 

23706—08 L' 


18 

ing   the   Third    Regiment,   charged    with    policing   Camaguey   and 
Oriente  provinces,  with  headquarters  ai  Santiago. 

The  officers  of  the  United  States  Army  detailed  for  duty  with  the 
Rural  Guard  are  performing  excellent  service.  All  of  them  filtered 
upon  tin'  discharge  of  their  duties  with  enthusiasm  and  confidence  of 
speedy  success.  The  Rural  Guard,  from  the  commanding  general  to 
the  latest  recruit,  are  eager  for  the  necessary  reforms,  and  I  record 
with  much  gratification  that  they  have  already  attained  a  high  degree 
of  efficiency;  that  promotion  is  no  longer  secured  by  political  activity 
or  influence;  that  they  refrain  from  exercising  police  power  within 
the  municipal  zones  excepting  when  called  upon  by  proper  authority; 
that  they  refrain  from  political  activity  and,  with  a  few  exceptions, 
manifest  no  desire  to  engage  therein;  and  that  they  have  regained 
the  confidence  and  good  will  of  the  general  public. 

SUSPENSION    OF    CONGRESS — EXERCISE    OF    LEGISLATIVE    POWERS    BY    PRO- 
VISIONAL GOVERNOR. 

The  Peace  Commission  found  that  the  Congressional  elections  of 
1905  were  so  tainted  with  fraud  as  to  render  them  illegal.  This  elec- 
tion involved  one-half  of  the  members  of  the  Senate  and  National 
Assembly,  and  upon  the  elections  being  declared  void  no  quorum  ex- 
isted. Thereupon  Secretary  Taft  issued  a  decree  suspending  the 
meetings  of  the  Congress  and  providing  that  the  legislative  powers 
should  be  exercised  by  the  provisional  governor.  The  exercise  of 
legislative  power  by  the  Chief  Executive  of  the  Republic  is  in  har- 
mony with  the  established  order  prevailing  in  Cuba. 

ENACTMENT  OF  LAWS  IN  ORDER  TO   MAKE  CONSTITUTION   EFFECTIVE. 

When  the  constitution  of  Cuba  was  adopted,  it  was  recognized  that 
many  of  its  provisions  were  opposed  to  the  existing  laws ;  and  many 
other  provisions  required  legislation  to  render  them  effective.  To 
meet  this  situation  and  tide  over  the  period  between  the  establishment 
of  the  Republic  and  the  enactment  by  Congress  of  the  necessary 
legislation  there  were  adopted  certain  "  transitory  rules  "  by  which 
the  old  laws  were  continued  in  force,  in  so  far  as  they  did  not  conflict 
with  the  constitution,  until  amended  or  repealed  by  Congress  and  new 
legislation  substituted.  In  construing  these  rules  the  supreme  court 
has  held  that  the  Chief  Executive  may  exercise  the  authority  there- 
tofore possessed  and  exercised  by  the  Spanish  governors-general. 
Under  the  Spanish  regime  the  decree  of  the  governor-general  had  the 
force  and  effect  of  legislative  enactment  and.  under  the  authority  of 
said  transitory  rules  and  article  G8  of  the  constitution,  which  em- 
powers the  President  to  issue  regulations  for  the  better  enforcement 
of  the  laws  and  decrees  for  the  administration  of  the  country.  Presi- 
dent Palma  continued  to  issue  decrees  having  like  force  and  effect. 


19 


ADVISORY   LAW    COMMISSION. 


The  plan  approved  by  the  Peace  Commission  called  for  the  enact- 
ment of  four  special  laws,  to  wit : 

1.  A  municipal  law  embodying  the  requirements  of  the  constitution. 

2.  An  electoral  law  containing  sufficient  provisions  to  secure  a  representa- 
tion by  the  minority  and  providing  for  the  conduct  of  elections  under  a  non- 
partisan bureau  of  elections  having  charge  of  police  during  the  election  and 
registration  period,  as  well  as  the  registration,  counting  of  the  votes,  and  de- 
claring the  result. 

3.  A  law  providing  for  the  reorganization  and  increased  independence  of  the 
Judiciary. 

4.  A  civil-service  law. 

A  revision  of  the  provincial  law  was  also  deemed  necessary.  Al- 
though the  laws  of  all  countries  on  these  subjects  bear  a  general 
resemblance,  it  is  necessary  that  said  laws  should  conform  to  national 
characteristics,  local  conditions,  public  desires,  and  public  exigencies. 
The  study  of  these  requires  time  and  a  knowledge  of  the  conditions 
to  be  met. 

A  commission  similar  to  that  contemplated  by  the  plan  of  the  Peace 
Commission  was  appointed  December  24,  1906;  it  is  known  as  the 
"  advisory  law  commission  "  and  is  composed  of  the  following  gentle- 
men: Col.  E.  H.  Crowder,  U.  S.  Army,  president;  Drs.  Erasmo 
Regiieiferos  Boudet,  Manuel  Maria  Coronado,  Francisco  Carrera 
Justiz,  Mario  Garcia  Kohley,  Rafael  Montoro,  Felipe  Gonzalez  Sar- 
rain,  Miguel  F.  Vondi,  Alfredo  Zayas,  Mr.  Otto  Schoenrieh,  Mr. 
Juan  Gualberto  Gomez,  and  Maj.  Blanton  C.  Winship,  judge-advo- 
cate, U.  S.  Army. 

This  commission  entered  upon  its  work  at  once.  The  field  of  in- 
vestigation proved  larger  than  was  anticipated,  ami  more  time  has 
been  consumed  than  originally  intended.  The  commission  has  given 
the  task  great  care  and  attention  and  lias  exhibited  ability,  fan1. 
thoughtfulness,  and  comprehension  of  subject-mail er.  The  time  em- 
ployed by  it  has  been  well  spent.  Its  work  is  rapidly  approach- 
ing completion.  The  municipal  law  and  the  electoral  law  are  prac- 
tically finished.  Although  not  officially  reported  to  the  provisional 
governor,  they  have  been  examined  by  him,  an.l  he  feels  assured  they 
are  admirably  adapted  to  the  purposes  for  which  they  are  intended. 
The  judiciary  law  is  also  practically  ready.  These  laws  will  be 
printed  in  pamphlet  form  ami  given  extensive  circulation  in  order 
that  their  provisions  may  be  examined  and  considered  by  the  in- 
habitants of  Cuba  prior  to  giving  them  force  and  effect.  Then 
every  reason  to  believe  that  the  laws  so  formulated  will  become  an 
important  and  potential  pari  of  the  permanent  Legislation  of  the 
Republic. 


20 

Where  all  have  done  bo  well  it  might  seem  Inadvisable  to  single 
(mi  one  for  special  mention  and  commendation,  bul  in  this  insta 
every  other  member  of  the  commission  will  be  gratified  by  special 
mention  and  commendation  of  the  work  and  ability  of  Col.  E.  II. 
Crowder,  U.  S.  Army,  president.     It   v.  cially  advantage 

thai  liis  services  were  available  for  the  provisional  administration. 
In  addition  to  exceptional  l«-ir;i  1  ability  and  training,  be  served  as 
legal  adviser  to  (lie  military  governor  of  the  Philippine  [slands,  ■ 
while  serving  in  thai  capacity  drafted  many  new  Laws  and  reformed 
many  old  <>nes  which  have  become  pari  of  the  permanenl  Legislation 
of  the  islands.  This  experience  is  of  great  value  in  the  work  of  the 
advisory  law  commission.  The  members  of  the  commission  promptly 
recognized  his  ability  and  the  value  of  his  judgment;  and  the  special 
study  which  he  gave  to  the  constitution  and  existing  laws  of  Cuba  in- 
creased his  efficiencjr  and  enabled  him  to  reconcile  existing  differences 
of  preconceived  opinions,  and  therefore  it  is  just  to  attribute  to  him 
a  large  share  of  the  credit  for  the  excellent  results  the  commission  has 
attained. 

POSTPONEMENT    OF    ELECTIONS — REGISTRATION    OF    VOTERS. 

The  harvest  of  the  sugar  and  tobacco  crops  in  Cuba  is  completed, 
usually,  about  the  middle  of  May.  As  that  season  approached  in 
1907  it  became  evident  that  the  advisory  law  commission  would  not 
complete  the  draft  of  the  laws  upon  which  it  was  working  within 
the  time  calculated.  The  municipal  law  and  the  electoral  law  are  in- 
dispensable requisites  to  the  elections.  It  is  necessary,  also,  before 
holding  these  elections  to  have  a  new%  registration  of  voters,  for  it 
is  commonly  known  and  conceded  that  the  existing  registration  lists 
are  erroneous — lacking  the  names  of  many  qualified  electors  and  con- 
taining the  names  of  unqualified  or  nonexisting  persons.  The  present 
registration  law  contemplates  that  the  electors  will  register  volun- 
tarily, or  that  the  representatives  of  a  party  will  submit  a  list  of  the 
qualified  electors  belonging  to  their  party  to  the  registration  board, 
whereupon,  either  by  virtue  of  actual  knowledge  of  the  board,  or  upon 
evidence  submitted  by  the  political  managers,  the  names  are  entered 
in  the  registration  booj^s.  This  system,  although  in  common  use  in 
Central  and  South  American  States  seldom  secure-  either  a  full  or 
accurate  registration.  The  ordinary  voter,  especially  in  rural  dis- 
tricts, is  seldom  willing  to  take  the  trouble  to  present  himself  for 
registration  and  the  lists  presented  by  the  partisan  committees  are 
usually  inaccurate  and  incomplete.  It  is  a  common  practice  for  all 
parties  to  submit  a  long  list  of  names  and  preserve  or  secure  a  copy 
of  those  accepted,  and  at  elections  call  upon  their  partisans  to  vote 
under  the  names  entered  in  the  register.     "When  it  was  known  that  the 


21 

provisional  administration  contemplated  a  registration  in  accordance 
with  the  old  law,  objections  were  made  on  all  sides  and  the  advisory 
law  commission  addressed  a  letter  to  the  provisional  governor  urging 
that  a  census  of  the  island  be  taken,  and  that  from  the  census  list  a 
new  registration  list  be  compiled.  This  plan  met  with  universal 
commendation  and  was  adopted.  In  April,  1907,  Secretary  Taft 
again  visited  Cuba.  Among  other  matters  which  received  his  at- 
tention at  this  visit  was  that  of  fixing  the  dates  for  the  forthcoming 
elections.  In  conference  with  him,  the  national  committees  of  the 
several  parties  agreed  that  it  was  inexpedient  to  hold  tho  elections  at 
the  time  then  contemplated.  The  results  of  these  conferences  with 
these  committees  and  other  representative  bodies,  were  embodied  in 
a  letter  written  by  Secretary  Taft  to  the  provisional  governor,  as 
follows : 

After  having  conferred  with  the  committees  of  the  Liberal,  Conservative,  and 
Republican  parties,  and  with  the  leading  men  of  the  community,  including 
lawyers,  bankers,  business  men,  representatives  of  the  chamber  ol  commerce 
and  others,  and  after  a  full  discussion  of  the  situation  with  you,  General  Barry, 
and  Consul-General  Steinhart,  I  have  made  the  following  statement  and  recom- 
mendation to  the  President : 

Having  in  view  the  circumstances  making  the  intervention  necessary,  and 
the  purpose  of  that  intervention,  the  condition  of  Cuba  and  the  attitude  of  its 
people  under  your  administration   are  very  satisfactory.     The   question    now- 
arising  is,  When  shall  the  elections  be  held?     The  advisory  law  commission 
appointed  to  draft  an  electoral  law.  a  municipal  law.  a  judiciary  law  and  a  civil- 
service  law,  and  composed  of  3  Americans,  4  Liberals  and  4  Conservatives,  have 
declared  to  me  that  no  fair  election  in  Cuba  can  be  held  unlil  after  the  taking 
of  a  census  for  the  purpose  of  enumerating  with  exactness  and  justice  the 
residents  of  each  town  with  a  view  to  the  verificati<  !i  of  the  registry  upon 
which  the  election  is  to  take  place,  and   Ibis  view   has  been   enforced   by  the 
assurances  of  all  the  political   parties.     All  parties,   through   their  commltl 
have  expressed  the  view  that  the  wisest  course  is  to  hold  a  preliminary  election 
to  test  the  electoral  law  and  to  test  the  tranquillity    of    the    country-     The 
Liberal  party  urge  that  this  election   shall  be  for  municipal  officers  and   for 
provincial  officers,  while  the  Conservative  party   insists  thai   it    oughl    to  be 
limited  to  municipal  officers;  but  they  agree  In  recommending  the  holding 
a  preliminary  election.    The  Liberal  party  expresses  the  view  thai  the  census 
can  be  completed  m   four  months  and  thai  the  provincial  and  municipal  i 
tions  may  therefore  be  held  in  September.    The  Conservative  party  does 
express  an  opinion  as  to  the  time  In  which  the  census  can  be  taken,  bul  It  • 
that   the  census  should  be  taken  with  greal   '•are  and   the  registration   lists 

founded  on  it  should  be  subjected  to  severe  and  impartial  judicial  scrutiny  as 
proposed  by  the  advisory  commission,  .and  thai  the  preliminary  election  shall 
be  held  a  reasonable  time  after  the  completion  of  the  census.  The  Liberal 
party,  hoping  thai  the  preliminary  election  may  take  place  in  September, 
recommends  that  the  presidential  and  congressional  elections  be  held  the-  .".1st 
of  December,  next,  thai  the  regular  constitutional  period  shall  elapse  there- 
after before  the  assembling  of  the  electoral  colleges  to  name  the  senators 
the  President,  members  for  which  are  elected  al  the  general  election.  By  the 
constitution  these  electoral  colleges  do  uol  convene  until  one  hundred 
after  the  genera!  election.    The  Liberal  party  suggests  that  the  new 


22 

siiiiii  11 t  to  receive  the  rote  of  the  election  for  the  Presidenl  In  time  to  permit 

his  Inauguration  on  the  "joiii  of  May,  1008,  thai  date  being  the  anniversary  of 
the  day  upon  which  the  fust  President  of  the  Republic  was  Inaugurated. 

The  Conservative  party  insists  thai  the  preliminary  election  is  in  the  nature 
of  nn  experimenl  and  thai  three  months  is  uol  :i  Bufflcienl  Interval  to  determine 
whether  the  experimenl  has  been  a  success,  and  recommends  thai  nol  less  than 
six  months  should  elapse  between  the  preliminary  election  and  the  presidential 
;iini  congressional  elections. 

First,  it  is  bardly  necessary  t<>  reiterate  thai  the  position  of  President  Roose- 
velt is  exactly  what  it  wns  when  the  first  proclamation  was  issued  establishing 
a  provisional  goveromenl  under  the  Pla1 1  amendmenl  Ln  this  Island,  to  wit :  That 
Ouba  must  be  turned  over  to  a  Cuban  government  fairly  elected  as  soon  as  the 
conditions  and  the  tranquillity  of  the  country  will  permit  and  will  assure  the 
stability  of  the  government  to  be  established. 

Second.  I  do  not  think  that  four  months  is  a  sufficient  time  in  which  to  take 
such  a  census  as  is  necessary  to  assure  a  fair  basis  for  holding  an  election.  It 
would  be  most  unwise,  therefore,  to  fix  a  definite  date  for  the  holding  of  a  pre- 
liminary election.  All  that  can  be  done,  and  all  that  onght  to  be  done,  is  to 
declare  that  a  census  will  be  taken  in  as  short  a  time  as  is  consistent  with 
making  the  census  thorough,  fair,  and  complete  for  electoral  purposes,  and  to 
announce  that  the  preliminary  election  will  be  held  within  such  period  there- 
after as  may  afford  a  reasonable  time  for  complying  with  all  the  requirements 
of  the  new  electoral  law  preceding  the  elections. 

Third.  The  municipal  and  provincial  elections,  which  are  in  a  sense  local 
elections,  should  be  held  at  the  same  time.  I  have  already  expressed  the 
opinion  that  the  election  by  which  the  present  provincial  authorities  were  put 
into  power  was  attended  with  such  irregularity  that  their  resignations  should 
be  at  the  service  of  the  Government,  although  present  conditions  justify  the 
maintenance  of  the  de  facto  status  of  these  officials  so  long  as  they  conduct  them- 
selves properly,  rather  than  an  indiscriminate  removal  of  them  with  the  possible 
excitement  and  controversy  likely  to  attend  the  selection  of  their  successors. 
Still  the  question  of  the  proper  policy  to  pursue  in  respect  to  the  present  pro- 
vincial officers  is  a  matter  which  is  in  your  hands  for  decision.  But  it  is  certain 
that  as  soon  as  the  present  condition  as  to  provincial  officers  can  be  cured  by 
an  election  that  that  election  should  be  held,  ami  therefore  that  both  the  munici- 
pal officers  and  the  provincial  officers  should  be  selected  at  the  preliminary  elec- 
tion. It  is  true  that  at  the  provincial  election  provincial  councilmen  are  to  be 
selected  who  by  law  will  constitute  one-third  of  the  electoral  college  to  vote  for 
senators,  but  at  the  national  elections  there  will  be  selected  two-thirds  of  that 
same  college,  and  therefore  the  selection  of  the  provincial  council  will  have  com- 
paratively little  bearing  on  the  national  election. 

Fourth.  Three  months  may  not  be  a  sufficient  time  in  which  to  test  the  ques- 
tion of  the  tranquillity  of  the  country  and  the  success  of  the  experimental  pre- 
liminary election,  and  therefore  our  declaration  should  not  be  more  limited 
than  that  the  national  elections  will  be  held  within  six  months  after  the  pre- 
liminary election. 

Fifth.  It  is  of  course  proper  to  comply  with  the  constitutional  require- 
ments as  to  the  interval  of  one  hundred  days  between  the  congressional  and 
presidential  elections  and  the  vote  of  the  electoral  colleges,  the  assembling  of 
the  Congress,  and  the  inauguration  of  the  new  President.  The  government  of 
this  island  should  then  devolve  on  the  newly  elected  President  and  Congress. 

Sixth.  The  carrying  out  of  this  plau  is  of  course  strictly  dependent  on  the 
tranquillity  of  the  country,  which  must  continue  through  the  two  elections  and 
must  give  assurance  of  the  stability  of  the  new  government,  because  without 


23 

this  the  United  States  will  not  be  discharging  the  obligation  devolving  ii]K>n  it 
by  reason  of  the  intervention. 

Seventh.  It  is  in  the  interest  of  the  business  prosperity  of  the  Island  that  this 
policy,  if  it  is  to  be  adopted,  be  made  public. 

I  have  submitted  the  substance  of  this  letter  to  the  President,  and  be  ap- 
proves the  foregoing  and  directs  me  to  make  this  communication  to  you. 

The  provisional  administration  has  proceeded  in  accordance  with 
the  views  expressed  in  the  above  letter. 

CENSUS. 

It  being  determined  to  take  a  census  of  the  population  of  Cuba, 
Mr.  Victor  H.  Olmsted  was  appointed  director  of  the  census  on  April 
29,  1907.  On  May  8  following  a  decree  was  issued  making  provision 
for  the  taking  of  the  census  "  for  electoral  purposes  and  such  other 
purposes  as  the  statistics  are  desired  to  serve."' 

In  order  to  effect  a  proper  organization,  Cuba  was  divided  into  6 
districts,  corresponding  to  the  G  provinces  of  the  island,  and  G  super- 
visors were  appointed. 

The  work  of  subdividing  the  different  provinces  into  districts  most 
convenient  for  purposes  of  enumeration  was  carried  forward  as 
rapidly  as  possible,  and  at  the  same  time  persons  were  selected  for 
appointment  as  enumerators. 

While  this  preparatory  work  was  in  progress  the  necessary  sup- 
plies for  the  taking  of  the  census  were  purchased,  blanks  were  printed, 
instructions  to  supervisors  and  enumerators  formulated,  and  all  the 
other  preliminary  work  incident  to  census  taking  accomplished. 

The  supervisors  were  called  to  Habana  and  were  personally  in- 
structed and  drilled  by  the  director  of  the  census.  They  were  re- 
quired, among  other  things,  to  perform  the  work  of  an  ordinary 
enumerator,  and  the  schedules  prepared  by  them  were  criticised  and 
recriticised  until  they  became  letter  perfect  in  the  work". 

The  supervisors  upon  returning  to  their  province-  assembled  the 
"  instructor  enumerators"  (one  from  each  municipality)  and  person- 
ally instructed  them  in  the  same  manner  that  they  themselves  bad 
been  instructed  by  the  director  of  the  census.  These  instructor  enu- 
merators returned  to  their  respective  municipal  terminos  and  t 
instructed  the  ordinary  enumerators. 

On  September  6,  1907.  a  proclamation  was  issued  fixing  Monday, 
September  30,  1907,  as  the  day  on  which  the  enumeration  should 
gin,  and  requiring  the  same  to  he  completed  not  later  than  November 
14,  1907.  -During  the  interval  between  September  6  ami  30,  L907,  the 
supplies  to  be  used  by  the  enumerators  were  distributed,  and  on  the 
day  fixed  by  my  proclamation  the  enumeration  began  simultaneously 
in  every  portion  of  the  island.  It  was  carried  forward  with 
little  interruption;  such  few  obstacL  led  themsel 


24 

readily  overa and  the  entire  field  work-  of  the  censi  om- 

pleted  within  the  required  time. 

Eighteen  hundred  enumerators  were  employed,  and  the  resul 
their  Labors  have  been  thoroughly  and  intelligently  accomplished. 
H  is  probable  thai  in  thoroughness,  clearness,  and  general  excellence 
this  census  will  compare  favorably  with  any  census  ever  taken.  All 
the  schedules  from  every  portion  <>!'  the  island  should  be  in  Habana 
by  or  before  the  L5th  day  of  December.  They  could  be  brought  here 
immediately  were  not  the  supervisors  required  to  scrutinize  them 
carefully  for  the  purpose  of  correcting  errors  and  supplying  de- 
ficiencies. 

The  director  of  the  census  now  has  a  considerable  force  of  clerks 
at  work  (which  will  be  increased  as  rapidly  as  circumstances  require) 
engaged  in  the  preparation  of  alphabetical  lists  of  male  citizens  of 
Cuba,  21  years  of  age  and  over,  who  are  entitled  to  the  right  of  suf- 
frage. A  separate  list  will  be  prepared  for  each  barrio  in  the  island, 
of  which  there  are  about  1,000.  The  work  of  preparing  these  lists 
will  be  pushed  forward  with  all  possible  speed  consistent  with  ac- 
curacy, after  which  the  work  of  tabulating  the  entire  returns  and 
the  preparation  of  the  full  census  report  will  be  taken  up. 

Judging  from  the  returns  thus  far  received,  the  total  population  of 
Cuba  is  estimated  to  be  about  2,000,000,  an  increase  of  about  25  per 
cent  as  compared  with  that  shown  by  the  census  of  1899. 

POLITICAL   PARTIES;    THEIR   PRESENT   ORGANIZATION. 

The  political  parties  in  Cuba  now  present  an  alignment  somewhat 
different  from  that  at  the  time  the  provisional  administration  was 
established.  The  Moderate  party  has  ceased  to  exist  under  that  name. 
There  is  a  new  party  called  the  Conservative,  which  is  largely  com- 
posed of  former  members  of  the  Moderate  party,  but  is  under  the 
direction  of  new  leaders.  The  Independent  National  party,  or  the 
portion  of  that  party  which  followed  the  leadership  of  Emilio  Nunez, 
governor  of  Habana  Province,  and  therefore  known  as  "  Nunistas," 
have  joined  the  Conservatives,  but  another  independent  party  calling 
itself  Republican  was  started  and  has  joined  the  Miguelista  faction. 
The  Liberal  party  is  "  split."  This  split  is  caused  by  the  rival  can- 
didacies of  Senator  Alfredo  Zayas  and  Maj.  Gen.  Jose  Miguel  Gomez 
for  the  nomination  for  the  Presidency.  Maj.  Gen.  Jose  Miguel 
Gomez  was  the  candidate  of  the  Liberal  party  in  opposition  to  the 
reelection  of  President  Palma  at  the  elections  in  1905.  He  and  his 
adherents  take  the  position  that  those  elections  were  fraudulent  and 
should  be  considered  as  not  held,  and  that  he  is  the  legal,  as  well  as 
the  logical,  candidate  of  the  party  at  the  forthcoming  elections. 

Senator  Zayas  and  his  adherents  refuse  to  admit  the  claims  of  the 
"  Miguelistas  "  and  insist  that  the  Liberal  party,  finding  itself  unable 


25 

to  overcome  the  fraudulent  measures  adopted  by  the  Government  to 
insure  success  at  the  Presidential  elections  of  1905,  abandoned  the 
field,  dissolved  the  party  organization,  and  terminated  the  candidacy 
of  Maj.  Gen.  Jose  Miguel  Gomez,  who  voluntarily  surrendered  his 
candidacy;  that  the  revolution  brought  about  a  new  condition  of 
things,  and  that  many  new  men  and  measures  came  to  the  front :  that 
Senator  Zayas,  the  chairman  of  the  national  committee  of  the  Liberal 
party,  also  became  chairman  of  the  revolutionary  committee;  that  he 
conducted  the  negotiations  with  the  Peace  Commission  on  behalf  of 
the  Liberal  party  and  the  revolutionary  organization  in  such  manner 
as  to  secure  the  accomplishment  of  practically  all  of  the  purposes  of 
the  revolution  and  the  Liberal  party,  and  that  these  services  entitle 
him  to  the  nomination. 

The  two  wings  of  the  Liberal  party  are  commonly  known  as  the 
"  Miguelistas  "  and  the  "  Zayistas."  Both  seem  equally  determined 
to  adhere  to  their  chosen  leader.  There  have  been  several  attempts 
to  reconcile  these  factions,  or  to  settle  the  disputed  question  by 
mutual  agreement,  or  arbitration,  but  so  far  all  have  failed.  At- 
tempts have  been  made  to  select  a  third  candidate  upon  whom  both 
factions  can  unite,  but  that  also  has  been  unsuccessful.  There  has 
been  no  test  of  strength  by  which  the  size  of  the  respective  followings 
can  be  estimated.  The  forthcoming  municipal  elections,  however, 
will  probably  afford  opportunity  for  a  fairly  accurate  estimate. 

The  Miguelistas  sought  to  have  the  old  national  committee  of  the 
Liberal  party  issue  a  call  for  the  election  of  the  precinct,  municipal, 
provincial,  and  national  assemblies  of  the  party.  A  majority  of  this 
committee  favor  the  candidacy  of  Senator  Zayas  and  declined  to 
issue  the  call  for  the  reason  that  it  was  too  far  in  advance  of  the 
elections.  Thereupon  the  Miguelistas  proceeded  to  the  selection  of 
assemblies  without  said  call,  and  completed  their  organization,  even 
to  the  election  of  the  delegates  to  the  national  convention,  in  all  of 
the  provinces  excepting  Habana.  The  Zayistas  arc  preserving  the 
old  organization  by  filling  the  vacancies  in  the  assemblies  and  com- 
mittees occasioned  by  the  abandonment  of  position-  by  the  follow 
of  Jose  Miguel  Gomez. 

This  split  in  the  Liberal  party  has iasioned  much  trouble  to  the 

provisional  adminisl  rat  ion,  especially  in  the  matter  ol*  distribution  of 
patronage.  Both  sides  claim  to  be  the  regular  organization  of  the 
Liberal  party  and.  as  such,  entitled  to  the  advantage  secured  by  the 
agreement  with  the  Peace  Commission.  General  G6mez  insisted  that 
the  committee  recognized  and  relied  upon  in  the  selection  of  appoint- 
ees did  not  accord  him  fair  treatment,  and  that  a  majority  of  said 
committee  favored  the  candidacy  of  Senator  Zayas  and  were  making 
recommendations  which  resulted  to  the  exclusive  benefil  of  thai  candi- 
dacy.   He  and  his  supporters  on  the  committee  withdrew  from  the 


2G 

same  ami  notified  the  provisional  governor  thai  -aid  committee  no 
Longer  represented  that  branch  of  the  Liberal  party  which  supported 
the  Gdmez  candidacy.  The  rank  and  file  of  both  fallowings  are  Lib- 
erals and  belong  (<>  the  class  winch  had  been  excluded  from  national 
patronage.  Ii  was  imperative  thai  the  provisional  administration 
should  deal  justly  and  impartially  with  both  fact  inn-.  Each  Bide 
admitted  thai  the  other  was  entitled  to  participate  in  the  patronage, 
hut  each  side  has  insisted  that  the  provisional  governor  is  favoring 
the  "i her  in  the  matter  of  pal ronage. 

GRANTING   OF   FRANCHISE   TO    ALIEN    RESIDENTS. 

Politics  in  its  broad  relation  to  the  maintenance  and  development 
of  government  in  Cuba  is  complicated  by  the  fact  that  a  large  por- 
tion of  the  population  is  composed  of  resident  aliens  and  that  a  large 
portion  of  the  commerce,  productive  industry,  and  public  utilities 
are  owned  and  conducted  by  resident  and  nonresident  foreigners. 
Under  the  Spanish  regime  the  Spaniards  in  Cuba  were  a  privileged 
class,  and  it  was  practically  impossible  for  a  Cuban  or  alien  to  estab- 
lish and  maintain  a  commercial  institution.  The  wonderful  richness 
of  Cuba  and  its  commercial  possibilities  are  well  known,  and  upon 
the  withdrawal  of  Spanish  sovereignty  and  the  establishment  of  the 
Cuban  Republic  many  foreigners  and  much  foreign  capital  entered 
Cuba  and  engaged  in  commercial  enterprises.  The  flood  of  Spanish 
immigration  was  checked  for  a  short  period,  but  soon  revived  and  has 
continued  unabated.  There  has  also  been  a  large  immigration  from 
other  European  countries,  and  the  United  States.  It  was.  of  course, 
desirable  that  the  old  Spanish  residents  of  the  island,  and  the  new- 
comers of  all  nationalities  should  become  citizens  of  the  Republic  and 
identif}'  themselves  with  and  participate  in  the  effort  to  establish 
and  maintain  the  Government.  The  treaty  of  peace  between  the 
United  States  and  Spain  made  provision  whereby  the  Spanish  resi- 
dents of  the  island  became  citizens  of  the  new  Republic  without  action 
on  their  part,  but  provided  that,  upon  declaration  of  a  desire  so  to  do, 
they  remained  subjects  of  the  King  of  Spain.  The  constitution  of 
the  Government  of  Cuba  provides  an  easy  and  simple  means  of  natu- 
ralization; but  the  Republic  of  Cuba  was  in  its  experimental  stage 
and  few  foreigners,  newly  arriving  in  Cuba  or  having  property  inter- 
est therein,  were  willing  to  surrender,  their  citizenship  and  resulting 
right  to  protection.  It  folloAvs  from  this  that  a  large  proportion  of 
the  business  and  property-owning  classes  are  not  citizens  of  the 
Republic,  and  avoid  the  obligations  of  citizenship.  There  is  a  mani- 
fest neglect  of  even  the  obligations  devolving  upon  a  resident  alien 
who  receives  for  his  person  and  property  all  the  benefits  of  orderly 
government  and  the  business  opportunities  existing  in  the  island, 
without  the  responsibilities  of  citizenship :  they,  of  course,  pay  tariff 


27 

dues  and  such  taxes  as  are  imposed  by  local  governments,  but  the 
greater  obligations  are  avoided.  This  large  class,  however,  is  per- 
sistent in  securing  both  general  and  special  benefits  and  exercising 
freely  the  right  of  criticism  and  complaint  as  to  the  Governm 
its  agents,  and  its  agencies.  They  apparently  stop  when  they  b 
performed  this  service  to  their  own  satisfaction  and  make  little  or  no 
effort  to  influence  or  control  political  powers  by  which  good  govern- 
ment is  to  be  secured. 

The  remedy  for  this  situation,  at  first,  appears  to  be  to  Impose  the 
obligations  of  citizenship  upon  resident  aliens  who,  by  five  yea 
residence  and  a  knowledge  of  the  Spanish  language,  have  become 
sufficiently  informed  as  to  local  and  national  affairs  and  public 
thought  and  feeling  to  be  of  substantial  service  in  the  proper  exercise 
of  political  powers.  The  advisory  law  commission,  in  drafting  the 
electoral  law,  devoted  much  time  and  effort  investigating  and  consid- 
ering the  proposition  to  bestow  the  right  of  suffrage,  in  municipal 
elections,  upon  resident  aliens.  The  proposition,  however,  met  with 
objection  from  both  Cubans  and  foreigners.  They  feel  thai  this 
would  renew  the  animosities  created  during  the  long  struggle  of  the 
Cubans  for  independence.  Many  protests  were  received  from  both 
Cubans  and  Spaniards.  Both  called  attention  to  the  fact  that  suffi- 
cient time  had  not  elapsed  to  completely  eradicate  the  bittern 
although,  happily,  rapid  progress  has  been  and  is  being  made  in  the 
right  direction.  The  Cuban  protests  culled  attention  to  the  fact  that 
a  majority  of  the  population  of  many  towns  in  the  island,  including 
Habana,  are  alien-;  in  several  of  the  towns  the  Spanish  contingent 
constitutes  a  majority,  and  in  several  more  the  combination  of  the 
Spanish  and  Chinese  residents  would  constitute  a  majority.  The  pro- 
tests from  the  Spaniards  called  attention  to  the  injustice  of  compel- 
ling them  to  participate  in  the  partisan  strife  resulting  from  election 
contests  and  expressed  a  grave  fear  that  they  would  be  injured  by 
having  the  right  of  franchise  forced  upon  them.  The  matter  is  .-till 
under  consideration  by  the  advisory  law  commission  and.  therefore, 
is  not  further  discussed. 

TERMINATION    OF   THE    PROVISIONAL     ADMINISTRATION. 

The  work  of  the  census  enumerators  is  completed  and  this  naturally 
induces  the  general  public  to  consider  the  question  as  to  when  the 
elections  are  to  be  held.  The  electoral  lisi  3  to  be  compiled  from  the 
enumeration  lists  will  be  completed  by  February  1.  1908.  Publicity 
and  opportunity  to  correct  errors  musl  be  given,  and  it  will  probably 
be  February  15  before  the  lists  are  finally  completed.  The  new 
electoral  law,  municipal  law.  and  provincial  law  musi  be  put  in  I 
before  the  elections  can  be  held,  and  the  advisory  commission   has 


28 

found  that,  owing  to  the  lack  of  legislation  at  present,  a  municipal 
accounting  law  ami  municipal  tax  law  will  In-  required  in  connection 
with  (lie  organic  municipal  law.  The  electoral  law.  the  municipal 
Jaw,  ami  the  municipal  accounting  law  are  about  ready  to  be  sub- 
mitted to  the  provisional  governor,  but,  while  the  drafts  of  the  muni- 
cipal tax  law  and  (he  provincial  law  have  been  made,  they  ha1  e  not 
yet  been  considered  by  the  commission.  Prior  to  enactment,  these 
laws  will  be  printed  and  made  public  in  order  that  the  people  may 
read  and  study  them  and  offer  such  suggestions  as  they  deem  ad- 
visable. The  decree  promulgating  these  laws  will  probably  be  issued 
early  in  February,  1908.  It  will  then  be  necessary  to  organize  the 
central  electoral  boards  and  the  provincial  and  municipal  boards  re- 
quired by  the  electoral  law.  This  organization  will  probably  not  re- 
quire more  than  forty-five  days,  and,  therefore,  should  be  completed 
by  March  15, 1908.  The  municipal  boards  take  charge  of  the  electoral 
lists  and  verify,  correct,  and  add  new  registrations,  but  must  com- 
plete the  registration  twenty-nine  days  before  the  elections.  It  will 
also  be  necessary  to  provide  voting  booths,  furniture,  and  other  para- 
phernalia for  the  elections  and  to  instruct  the  election  boards  as  to 
their  new  duties.  The  call  for  provincial  elections  must  be  issued 
seventy-five  days,  and  for  municipal  elections  sixty  days.  As  the 
first  elections  are  for  both  provincial  and  municipal  officials,  the  call 
will  be  for  seventy-five  day-. 

The  elections  are  to  be  held  under  a  new  law,  not  yet  in  force; 
and  as  there  are  many  provisions  that  will  require  explanation  and 
instruction,  I  doubt  if  the  periods  of  time  mentioned  can  be  permitted 
to  overlap  to  any  considerable  extent;  therefore  the  provincial  and 
municipal  elections  will  presumably  be  held  in  April  or  May,  1908. 

The  agreement  reached  by  all  parties  as  to  the  holding  of  the  elec- 
tions provides  as  to  the  Congressional  and  Presidential  elections  as 
follows  (see  letter  of  Secretary  Taft,  dated  April  10,  1907;  supra)  : 

Fourth.  Three  months  may  not  be  sufficient  time  in  which  to  test  the  ques- 
tion of  the  tranquillity  of  the  country  and  the  success  of  the  experimental  pre- 
liminary elections,  and  therefore  our  declaration  should  not  be  more  limited 
than  that  the  national  elections  will  be  hold  within  six  months  after  the  pre- 
liminary elections. 

The  tranquillity  of  the  island  is  absolute  and  complete,  and  I 
believe  it  will  not  be  seriously  disturbed  by  the  preliminary  elections. 
Doubtless  numerous  election  contests  will  develop  which  must  be 
settled,  for  it  is  essential  that  the  municipal  and  provincial  officials 
be  duly  installed  and  become  familiar  with  the  duties  of  their  offices 
prior  to  proceeding  with  the  second  election.  I  do  not  think  this 
will  require  six  months,  but  of  course  can  not  fix  the  limit  without 
knowing  the  effect  of  the  preliminary  elections.  The  present  pros- 
pect is  these  elections  will  pass  off  quietly  and  will  cause  sufficient 


29 

amalgamation  of  the  existing  political  groups  to  show  the  general 
outline  and  outlook  of  the  national  contest,  and  the  proper  thing 
to  do — in  fact,  the  only  thing  that  can  be  done — is  to  await  the  res 
of  the  provincial  and  municipal  elections  before  taking  the  next  step. 
The  serious  aspect  of  the  present  situation  is  the  lack  of  unanimity 
among  the  people  and  the  want  of  a  political  issue  of  sufficient  im- 
portance to  command  the  efforts  of  a  majority  of  the  electors  for  its 
promotion.  The  campaign  involves  no  other  issue  than  the  personal 
popularity  of  the  several  candidates  now  annouiiccl  or  being  con- 
sidered, and  in  its  present  stage  consists  of  efforts  to  secure  the  sup- 
port of  local  leaders;  it  is  similar  to  the  antecon  vent  ion  campaigns  in 
the  United  States.  At  this  time  there  exists  a  general  lack  of  confi- 
dence that  any  of  the  candidates  lias  a  following  sufficiently  Large 
and  united  or  possesses  sufficient  prestige  and  public  confidence 
to  make  his  administration  stable  if  he  were  elected  and  in-tailed 
in  office.  The  partisans  of  each  candidate  are  certain  their  leader  has 
such  a  following  and  prestige,  but  they  are  equally  certain  all  the 
other  candidates  have  not.  As  already  stated.  I  hope  and  believe  the 
preliminary  elections  will  give  the  several  parties  more  form  and 
substance  and  do  away  with  this  uncertainty.  It'  they  do  not,  the 
question  of  the  time  for  holding  the  Presidential  election  will  be  fur- 
ther complicated   instead  of  elucidated. 

During  the  first  few  months  of  the  provisional  administration 
there  was  considerable  discussion  of  the  advisability  of  bringing 
about  the  annexation  of  Cuba  to  the  United  States,  or  the  establish- 
ment of  a  protectorate  by  the  United  States  over  the  island.  In 
spite  of  the  oft-repeated  assurances  to  the  contrary,  a  large  number 
of  Cubans  fear  the  United  States  desires  and  contemplates  the  annex- 
ation of  the  island.  This  feeling  interferes  with  the  attempt-  of  the 
United  States  to  assist  Cuba  and  will  continue  to  interfere  with  the 
carrying  out  of  the  obligations  of  the  treaty  by  which  the  United 
States  guarantees  and  protects  the  sovereignty  of  the  Cuban  Republic. 
This  fear  is  of  natural  origin.  The  Cubans  rightly  consider  their 
island  the  richest  in  possibilities  and  the  most  salubrious  in  climate 
of  any  portion  of  the  Western  Hemisphere,  if  not  the  world:  they 
remember  the  struggle  Spain  made  to  retain  it.  and,  as  most  men  do 
with  a  possession  they  greatly  prize,  they  can  not  realize  that  others 
do  not  covet  it:  they  know  the  strategical  importance,  from  a  military 
standpoint,  of  Cuba  to  the  United  States  and  were  made  accustomed 
by  centuries  of  Spanish  rule  to  seeing  everything  subordinated  to 
military  requirements;  also,  from  their  point  of  view,  the  trade  and 
commerce  of  the  United  State-  apparently  would  be  benefited  by  the 
annexation  of  the  island.  The  Cubans  have  the  utmost  confidence  in 
President  Roosevelt  and  his  Administration:  many  of  them  realize 
that  public  sent  in  H'i  n   and  many  of  (he  great   special   inn  I  the 


30 

United  States  are  opposed   to  annexation  now  or  hereafter;  they 

know  ih.it  the  joint  resolution  adopted  in  April.  L898,  by  the  United 
States  < longress,  "  thai  the  people  of  the  [sland  of  <  tuba  are  and  of 
righl  ought  to  be  free  and  independent,"  is  a  pari  of  the  permanent 
legislation  of  the  United  States  and  thai  recourse  was  had  to  the  war 
powers  <>l'  the  nation  to  enforce  recognition  of  this  declaration;  but, 
nevertheless,  the  fear  links,  especially  among  the  ignorant ;  this  comes 
in  Large  measure  from  the  periodica]  agitation  of  the  matter  by  resi- 
dents of  the  island  who  desire  annexation,  and  the  fears  of  the  people 
are  taken  advantage  of  by  numerous  agitators  and  politicians  seeking 
to  promote  their  personal  interests  or  prestige.  If  it  were  possible  to 
entirely  allay  these  fears  and  make  all  the  people  of  Cuba  realize  how 
sincerely  and  steadfastly  the  people  of  the  United  States  desire  and 
intend  that  the  sovereign  independence  of  the  Republic  of  Cuba  shall 
be  preserved,  and  the  Government  of  the  island  administered  by  offi- 
cials elected  by  citizens  of  the  Republic,  many  difficulties  of  the  Cuban 
situation  would  be  eliminated ;  but  the  assurance  of  the  United  States 
has  been  repeated  so  often,  and  as  it  is  now  crystallized  into  con- 
gressional legislation,  treaty  stipulation,  and  international  pledge, 
there  is  nothing  more  possible. 

Doubtless  the  desire  to  be  brought  under  the  jurisdiction  and  direc- 
tion of  the  Government  of  the  United  States  continues  to  prevail 
among  the  large  alien  contingent  and  a  small  number  of  Cubans  who 
own  property  and  fear  a  recurrence  of  disorder.  An  overwhelming 
majority  of  the  Cubans  are  unwilling  to  surrender  the  independence 
and  sovereignty,  to  secure  which  practically  every  Cuban  of  this 
generation  joined  in  revolt  against  Spain.  The  universal  prevalence 
of  this  sentiment  among  them  gives  me  confidence  that  the  Cubans 
will  achieve  good  and  stable  government.  During  the  years  of  war- 
fare against  Spain  they  willingly  endured  great  hardships  and  cheer- 
fully made  great  sacrifices.  This  action  on  their  part  was  not  spas- 
modic, but  the  hardships  and  sacrifices  were  long  sustained.  At  the 
present  period  of  their  national  development  it  is  necessary  that 
they  should  make  sacrifices  and  compromises  of  individual  opinions, 
preferences,  and  desires  respecting  the  personnel  and  conduct  of  affairs 
of  government,  and  I  believe  that  when  they  finally  ascertain  and 
realize  what  these  sacrifices  are,  and  would  accomplish,  they  will  be 
made  in  the  same  spirit  and  with  the  same  completeness  that  makes 
possible  the  maintenance  of  stable  government  in  all  well-regulated 
Republics. 

The  provisional  administration  is  going  ahead  as  rapidly  as  circum- 
stances and  conditions  permit  with  the  execution  of  the  plan  set  forth 
in  Secretary  Taft's  letter.  Up  to  this  time  peace  and  tranquillity 
have  prevailed  in  the  island,  and  substantial  progress  has  been  made 
in  gratifying  the  desire  of  the  Cuban  people  to  make  stable  the  Re- 


31 

public  and  secure  for  its  people  good  laws,  good  administration,  pub- 
lic improvements,  promotion  of  commerce,  and  development  of  the 
island,  together  with  the  other  benefits  of  public  peace  and  domestic 
tranquillity. 

ECONOMIC  CONDITIONS. 

Tested  by  tangible  evidence  the  economic  situation  is  excellent. 

AGRICULTURE,  COMMERCE,  AND   INDT  STKIES. 

In  October,  1906,  it  was  generally  feared  that  the  revolution  had 
destroyed  the  financial  credit  of  the  island;  the  long-continued 
drought  was  believed  to  have  greatly  injured  the  cane,  tobacco,  fruit, 
and  vegetable  crops.  A  cyclone  devastated  the  island  during  the  month 
and  was  believed  to  have  completed  the  total  loss  of  the  cam'  and  to- 
bacco crops.  Everyone  expected  the  receipts  of  the  custom-houses 
would  diminish  and  a  general  fear  prevailed  that  the  revenues  of  the 
Government  would  not  be  sufficient  to  meet  the  obligations  and  cur- 
rent expenses.  The  outcome  was  quite  the  reverse  of  public  expecta- 
tion. The  island  produced  more  sugar  than  ever  before  in  its  history. 
The  tobacco  crop  was  short,  but  superior  in  quality  and  commanded 
the  highest  price  in  the  history  of  the  industry  in  Cuba.  The  fruit 
and  vegetable  crops  were  large  and  showed  a  gratifying  increase  in 
acreage  over  previous  years,  and,  although  the  output  was  reduced  by 
the  drought,  the  prices  secured  were  high  and  results  grati  fying  to  the 
producers.  The  customs  receipts  were  in  excess  of  any  preceding 
year,  and  the  condition  of  the  public  treasury  continued  to  be 
excellent. 

The  rainfall  in  Cuba  during  the  past  twelve  months  has  been  con- 
siderably less  than  usual.  The  rainfall  during  what  is  known  as  the 
"  Rainy  season'7  was  little  in  excess  of  the  amount  of  rain  that 
usually  falls  during  the  "Dry  season,"  and  during  thi>  year's  dry 
season  there  was  little,  if  any,  rain.  This  has  impeded  the  growth  of 
the  cane  and  there  will  be  a  corresponding  reduction  in  the  amount 
of  sugar  produced  from  a  given  quantity  of  land,  but  there  has  been 
an  increase  in  acreage,  and  the  prevalent  opinion  is  that  the  island 
will  produce  at  least  1,150,000  tons  of  sugar.  Rains  between  this  time 
and  the  completion  of  the  harvest  will  increase  the  output.  Some 
portions  of  the  island  had  rain  in  sufficient  quantity  and  frequency  to 
secure  ordinary  growth  of  cane,  while,  in  other  portions  the  cane  is 
small.  The  cane  lias  grown  throughout  the  season,  but  not  as  rapidly 
as  usual  and  is  about  thirty  day-  behind  its  usual  development  li 
the  cane  cutting  is  postponed  for  an  equal  Length  of  time,  the  yield 
will  be  correspondingly  increased.  There  is  a  good  >h-^\  of  cane  that 
was  left  uncut  last  year,  and  this  is  well  matured  and  will  be  cut  first, 


32 

but  this  will  n«>i  take  more  than  two  week-.  The  difficulty  about 
delaying  the  cutting  is  thai  all  the  cane  will  noi  be  harvested  by  the 
time  the  rain}  season  sets  in  next  spring.  When  the  rain-  come  it  is 
difficult  and  expensive  to  work-  iii  the  fields  and  haul  the  cane  to  the 
railroads  or  the  mills.  Sugar  experts  predict  thai  the  price  of  sugar 
will  be  high;  and  if  the  prediction  is  realized,  the  sugar  output  of 
Cuba  will  bring  at  least  the  average  financial  return. 

The  tobacco  crop  is  now  being  planted,  and  therefore  no  e-timate 
can  be  made  as  to  the  yield,  bul  there  will  be  a  large  increase  of  acre- 
age and  there  is  nothing  to  indicate  a  reduction  of  the  present  high 
prices. 

There  is  also  a  substantial  increase  in  acreage  devoted  to  the  raising 
of  bananas,  pineapples,  orange-,  and  other  fruits,  and  the  raising  of 
vegetables  to  supply  the  demand  for  fresh  vegetables  during  the  win- 
ter season  in  the  United  State-. 

The  culture  of  coffee  also  shows  gratifying  increase,  and  new  groves 
are  being  planted  in  those  portions  of  the  island  where  this  important 
food  product  is  successfully  grown. 

The  iron  industry  is  showing  remarkable  advancement.  Xew  de- 
posits of  ore  have  been  discovered  and  are  being  developed.  Exten- 
sive plants  which  require  the  construction  of  railways,  mills,  piers, 
and  dredging  of  channels  are  being  installed. 

The  manufactures  of  the  island,  especially  those  which  consume 
the  natural  products,  are  in  prosperous  condition,  and  are  rapidly 
expanding  in  capacity  and  output. 

Foreign  and  domestic  commerce  and  trade  for  the  past  j7ear  show  a 
gratifying  increase  over  preceding  j^ears. 

The  increase  in  customs  receipts  at  Habana  from  December  1.  1906, 
to  October  31,  1907,  over  the  same  months  in  1905-6  amount  to 
$1,381,684.15. 

The  receipts  of  the  treasury  from  other  sources  from  December  1, 
1906,  to  October  31,  1907,  as  compared  with  the  receipts  for  the  same 
months  in  1905-6,  show  an  increase  of  $48,158.41. 

The  receipts  of  the  post-office  department  from  December  1.  1906, 
to  October  31,  1907,  show  an  increase  of  $58,290.02,  as  compared  with 
the  receipts  for  the  same  months  in  the  year  1905-6. 

The  condition  of  the  national  treasury  on  October  31, 1907,  is  shown 
by  the  following  statement: 


33 

Statement  of  the  financial  condition  of  the  Republic  of  Ouba, 

On  hand  and  in  Treasury,  September  29,  1906  (date  of  estab- 
lishment of  provisional  government) $13,625,539.65 

Received    during    period    from    September    29, 
100G,  to  October  31,  1907 : 

Customs  receipts $27.  717.  170.30 

Consular  receipts 120,055.  36 

Post-office  receipts 870,346.05 

State  taxes 995,  632.07 

Income  from  stale  property 386,093.02 

Interna]  revenues 4,  4.-.1,  <;u7.  50 

From  all  other  sources 6,  371.  1 19.  71 

41,242,024.51 

Total 54,  S67,  5U4. 16 

Expenditures  since  September  29,  1006 : 

Congress    284,956.58 

Executive  office  (salaries,  materials,  etc.) 87,  500.  54 

Department  of  treasury 5,  247,  :»7.;.  ::•', 

Departmenl    state    and    justice    (including 

judiciary)    1,964,178.71 

Department      of      government      (including 

armed   forces,  census,  and   sanitation) 12,910,986.45 

Department  of  public  instruction 4,523,339.26 

Department  of  public  works 9,450,702.85 

Department  of  agriculture 291,043.53 

Interest  on   loan   and  cost  of  collection  of 

internal  revenues 2,  711,  053.  56 

Special  deposit 743,007.00 

Payments  to  army  <  i'd-50  per  cent) 1,398,  188.  76 

39,613,230.60 

Balance  in  treasury,  October  31,  1007 15,254,333.50 

b£sumi''. 
Surplus  from — 

Revenues  $9,  525,  489.  18 

Taxes   2.  568,  B87.  12 

Special    fund 311,916.  I! 

First  army  loan B1.00 

Second  army  loan 2,215,509.87 

Total  15,  254,  3::: 

This  amount  is  not  all  available  or  "free  cash."     There  are  in- 
cluded in  said  funds  unexpended  balances  of  permanent  appropria- 
tions by  the  Cuban  Congress  for  public  work-  $5,489,516.42,  and  unea 
pended  balances  of  permanent  appropriations  for  public  improi 
ments  made  by  the  provisional  administration  amounting  t<>  $2,11 
909.87.     These    two    foregoing   sums    can    not    be    charged,    in    full, 
against  the  cash  balances  in  the  treasury,  foi  the  unexpended  portion 
23706— os — :; 


34 

of  appropriations  Eor  works  now  in  progress  are,  either  in  whole  or 
in  part,  in  the  hands  of  disbursing  officers  and  deposited  to  their 

credit  in  ili.-  r.unco  Nacional  or  Royal  Bank  of  Canada,  and  do  not 
appear  in  the  cash  account  <>f  the  treasury.  The  total  amount  on 
deposit  in  the  Banco  Nacional  to  the  order  of  the  disbursing  officers  is 

$:U7i;,!»:>.v.h;.  ;m,l  in  the  Royal  Bank  of  Canada  $72,234.54,  making  a 
total  <>!'  $3,549,190.50.  What  amount  of  these  deposit*  consists  of 
unexpended  balances  '>i'  appropriations  made  by  special  laws  and 
what  amount  i-  chargeable  to  the  current  expenses  provided  for  in  the 
budget  can  not  be  stated  until  the  end  of  the  fiscal  year,  but  it  is  safe 
to  assume  that  at  least  >1,000,000  consists  of  unexpended  appropria- 
tions for  public  works.  The  funds  in  the  treasury  also  include 
$1,000,000  of  national  bonds  (Speyer)  purchased  by  the  Government 
in  1905,  and  unavailable  for  reissue  or  appropriation;  also  $2,847,- 
940.87  unexpended  balances  first  and  second  army  pay  loans  unavail- 
able for  appropriation.  It  follows  from  the  foregoing  that  the 
amount  of  cash  in  the  natonal  treasury  available  for  appropriation  is 
$4,551,310.63. 

The  annual  budget  for  the  fiscal  year  ending  June  30,  1908,  appro- 
priates the  sum  of  $23,309,539.87  from  any  money  in  the  treasury  not 
otherwise  appropriated  for  specific  purposes,  as  follows : 

For  the  executive  power — provisional  govern  merit $105,080.00 

For  the  department  of  state  and  justice 680,265.57 

For  the  department  of  government 8,973,002.65 

For  the  department  of  the  treasury 3,440,054.65 

For  the  department  of  public  instruction 4.  P.»5.  stJS.  00 

For  the  department  of  public  works  a 4,  445,  226.  00 

For  the  department  of  agriculture,  industry,  and  commerce 274,  988.  00 

For  the  judicial  power 1.193,255.00 

Total 23,30:-.  539.  87 

The  application  of  the  foregoing  appropriations  must  be  adjusted 
in  accordance  with  allotments  detailed  in  statements  attached  to  and 
made  a  part  of  the  Decree  establishing  the  budget. 

The  estimated  receipts  to  cover  the  appropriations  hereby  provided 
are  as  follows : 

Customs,  less  amount  for  covering  the  expenses  of  the  legislative 

power  in  the  fixed  budget $23,046,000 

Consular  revenues 350,000 

Communications    , 743.  000 

Internal  revenue S31,  000 

State  properties  and  rights 234,000 

Miscellaneous  revenues 2G2.  325 

Total 25,  466,  325 

a  In  addit         to  funds  appropriated  by  Cuban  Congi  i  s& 


35 

The  receipts  of  the  national  treasury  for  the  past  five  months  have 
been  in  excess  of  the  estimate  upon  which  the  budget  was  ba 
to  wit,  $25,460,325,  and  therefore  the  appropriation-  made  in  the 
budget  will  be  provided  for  by  the  ordinary  revenues,  leaving  the 
available  cash  now  on  hand  and  excess  of  future  revenues  over  budget 
appropriations  to  be  applied  to  extraordinary  expenditures  -electi< 
unadjusted  claims  for  damages  by  insurgent  forces,  new  public  im- 
provements, etc. 

Taking  into  consideration  that  this  showing  is  for  a  year  immedi- 
ately following  a  revolution  and  cyclone,  and  includes  a  period  of 
panic  and  world-wide  disturbance  of  business  and  finance,  of  -hikes 
and  lockouts  throughout  the  island  that  paralyzed  for  month-  the 
cigar-making  and  building  industries,  and  otherwise  interfered  with 
commerce  and  industrial  pursuits,  and  with  low  prices  for  sugar  pre- 
vailing, some  idea  is  obtained  of  the. wonderful  richness  and  recupera- 
tive powers  of  the  Island,  and  impels  consideration  of  the  question, 
What  would  be  the  results  of  a  few  years  progress  under  conditions 
of  tranquillity,  united  effort,  and  proper  administration  \ 

COMMERCIAL    INTERESTS. 

The  commercial  interests  of  Cuba  are  in  excellent  condition.  The 
foreign  and  domestic  trade  is  constantly  increasing,  and  this  ha-  been 
true  each  year  since  the  Spanish-American  war.  The  commercial 
classes  are  conservative,  but  are  quick  to  see  and  take  advantage  of 
actual  and  genuine  opportunities  for  trade  expansion  and  increased 
profits.  The  development  of  the  commerce  ha-  been  so  well  grounded 
and  safely  conducted  that  no  disastrous  results  were  occasioned  in 
commercial  circles  from  the  ebb  tide  of  expansion  induced  by  the 
large  increase  of  the  currency  of  the  island  by  the  bond  issues  and 
practically  free  distribution  of  money  and  the  practically  unlimited 
credit  for  the  years  from  1902  to  1900. 

This  gratifying  condition  results  principally  from  the  marvelous 
productiveness  of  the  island,  the  constantly  increasing  population, 
and  the  business  sagacity  and  acumen  of  the  merchants,  but  no  -mall 
share  of  the  credit  is  due  to  the  Chamber  of  Commerce,  Industries, 
and  Navigation  of  Cuba.  This  organization  includes  representatives 
of  all  the  mercantile  interests  of  the  island.  It-  officers  arc  capable, 
farsighted  business  men,  who  keep  in  touch  with  all  lines  of  business 
in  all  parts  of  the  Republic  and  render  prompt  and  efficient  assistance 
whenever  needed.  By  means  of  this  organization  the  cooperation 
and  coordination  of  all  branches  and  kind-  of  commercial  life  i- 
secured  and  the  individual  and  mutual  interests  are  promoted.  A  lew 
months  after  the  provisional  administration  was  established  repre- 
sentatives of  the  chamber  of  commerce  presented  a  large  number  oi 


36 

complaints  which  had  arisen  in  the  administration  of  the  affairs  of 
the  custom-houses.  Practically  all  of  them  could  be  grouped  a- 
complaints  against  (1)  erroneous  classification  of  imports  under  ex- 
isting regulations,  (2)  changes  in  classification  of  goods  after  entry 
and  |>;i\  nii'iif  of  the  amount  of  duties  demanded,  (3)  improper  inter- 
pretation and  application  of  the  regulations  governing  coastwise 
trade  and  navigation,  and  (I)  arbitrary  levy  of  fines  and  penalties. 
Especial  stress  was  laid  upon  the  hardship  and  injustice  of  changing 
the  classification  of  goods  after  they  had  passed  through  the  cus- 
tom-house and  been  in  the  possession  of  the  importers  for  weeks  and 
months  and.  in  many  instances,  sold  in  the  regular  course  of  trade  at 
prices  fixed  With  reference  to  the  duties  originally  imposed.  The 
opportunity  for  this  practice  was  afforded  by  the  far)  thai  the  ac- 
counts of  the  custom-houses  with  the  treasury  were  not  audited  for 
from  eight  to  twelve  months  after  the  transactions  occurred;  if  dur- 
ing this  period  a  change  in  classification  was  made,  the  auditor  re- 
quired the  amount  called  for  b}r  the  new  classification  and  the  im- 
porter was  required  to  make  good  the  difference.  Each  of  the  com- 
plaints presented  were  investigated  and  all  of  them  finally  settled  to 
the  mutual  satisfaction  of  the  chamber  of  commerce  and  the  officials 
of  the  treasury. 

This  led  to  the  establishment  of  an  arrangement  which  is  work- 
ing satisfactorily.  If  a  member  of  the  association  considers  himself 
aggrieved  by  action  of  any  department  of  the  Government,  he  |  »resents 
the  matter  to  the  executive  committee  of  the  chamber  of  commerce; 
if  that  body  sustains  his  contention,  the  matter  is  presented  to  the 
provisional  governor  and  referred  to  the  department  involved  for  in- 
vestigation and  report;  if  a  difference  of  opinion  is  found  to  exist, 
the  question  is  determined  by  the  governor.  This  plan  saves  both 
time  and  trouble  for  the  Government ;  it  has  brought  about  a  much 
better  feeling  and  alleviated  the  "irrepressible  conflict  "  that  in  all 
countries  is  waged  between  importers  and  customs  officials. 

The  approximate  value  of  goods  imported  and  exported  during  the 
fiscal  years  of  1905-6  and  1900-7  is  shown  in  the  following  statement : 

Good*  imported  ami  exported,  excluding  coinage. 


Imports. 


Countries. 


United  States Sis.' 


Germmiy 

Spain  

France 

United  Kingdom 

t  ither  countries  in  America. 
Other  countries  in  Europe.. 
All  other  countries 


Exports. 


Fiscal  year 

Fiscal  year 

Fiscal  year 

Fiscal  vear 

1906-6. 

1906-7. 

1905-0. 

1906-7. 

• 

17,  234 

-1.  107 

:  41,012 

5  3,215 

6.  433, 969 

4.309.791 

3, 130.  757 

10,6  i 

S,  287, 061 

-    ■      - 

413.305 

5,664,301 

5,>i.t;o-j 

1,680,047 

1,0  - 

14,987,900 

13,639,130 

■"•.  ^69,376 

4.  4  4<i.  >23 

12,833,136 

9,601,412 

2,208,415 

2.  211.. 504 

3,97 

:'..  134,585 

- 

821,672 

1.39S.996 

• 

Total 104,395,592        96,673,989       106,199,316       110,764,937 


37 


COINAGE 


Imports. 

orte. 

Countries. 

Fiscal  year 
190 

:  year 
1906 

year 
19i 

United  States 

279,860 
1,276,  134 

Spain 

Total 

2,109,752 

665, 306 

6,698          4,047,909 

In  order  to  test  the  financial  condition  of  the  people  at  large,  I  re- 
quested statement  of  annual  gross  receipts  since  1903  of  the  Havana 
Electric  Street  Railway  Company,  the  Havana  Gas  and  Electric 
Light  Company,  and  the  savings  department  of  the  Banco  Nacional, 
these  institutions  being  dependent  upon  the  general  public  for  reve- 
nue and  doing  business  with  all  classes.  The  -lm\\  ing  made  by  these 
corporations  is  as  follow-: 

II  \l:\.\A    GAS    AND  ELECTRIC   LIGHT    COMPANY. 

Gro.s-.s-  rect  ipts  from    1908. 


Month. 


January  . . . 
February  . . 

March 

April 

May 

June 

July 

August 

September. 

October 

November . 

December  . 


L903. 


J76.081    7 

76,320.01 
::;, urn.  L3 
71,670  vi 
76,711.28 
68,  L68.62 
70,688.  mi 
74,968.  L6 
79,958.79 
mi,  1  19.  6 1 
96,244.19 


L904. 


$86,649. 

82,645. 
81,007. 
82, 17:>. 
76,079. 

82,701. 
80,870. 

87,  l"'.'. 

103,638. 


1905. 


77,139. 

84,007. 
92,073. 

1.08,489 


Total  922,944.36     L,014,915.13     1,043,762.96      I 


96, 
L01, 
115, 
L04, 

Ml. 
117, 
lis. 

I  II, 


848.  1" 
191.21 


122, 
121, ! 

lis.. 

124,1 

000.00 
6148,000.00 

'•ll'.Mxm.OO 


a  Approximately. 


6  Estimated. 


HABANA    ELECTRIC    RAILWAY    COMPANY. 

Gross  receipts  from  commencement  of  tin  operation  of  electric  rood  in  Habana, 
including  gross  receipts  of  stage  lines  (rum  April  i.  1908. 


Month. 


L903. 


Janua  ry 175, 921. 30 

Y\  bruary 79,024.28  117,564.04 

March 88, 139.74  128,  108.52 

April 116,755.84  120,703.24 

Mnv 128,949.33  127, 

June 117,963.84  123,530.  19 

July 118,648.83  127, 

August  794.05 

September. 124,  171    ,s  126,949.28 

October 118,562.70  131  0 

November no,  229. 12  125,810. 68 

December n  1,618.  18  187,: 

Total 1,818,294. 19 

Increase 441,597.06  201, 


128,  ■ 

1 14,977.01 
187,01 
154  i 
117.  1 
166  G 

A.  19 
151,2 
180,  ' 
169,0; 
161,  I 


147, 

175, 

160, 
167, 
161, 


847.  12 
081. 7K 


1*1.6 


291,274  82  I      124,  f 


173790 


Estimated. 


38 

The  showing  as  to  the  savings  department  of  the  Banco  Nacional 
was  submitted  by  Letter  from  the  president  of  the  bank,  Mr.  Edward 
G.  Vaughn,  from  which  the  following  is  quoted: 

ivi'init  me  to  Bay  In  tiiis  connection  thai  the  records  of  the  savings  depart* 
iiimt  in  the  National  Bank  <>f  Cuba  during  the  two  worsl  months  of  the  year — 
September  and  October — show  the  following:  During  September  there  were  200 
new  accounts  opened,  whlcb  aggregate  all  moneys  being  reduced  to  United 
States  currency,  over  $117,000.  in  <  October  there  were  210  new  accounts,  aggre- 
gating $119,000,  making  a  total  for  the  two  months  of  416  new  accounts  for  an 
aggregate  amount  of  $236,000. 

The  accounts  currenl  were  almosl  In  the  Bame  proportion,  bul  of  course  in 
mucb  larger  amounts,  and  ye1  perhaps  qoI  us  significant.  This  same  propor- 
tion of  gain  has  been  maintained  through  the  month  of  November.  These  fig- 
ures only  apply  to  the  head  office,  the  branches  having  shown  a  gain  through- 
out, but  not  in  a  proportion  as  great. 

This  gratifying  showing  does  not  mean  that  economic  conditions 
can  not  be  improved  nor  that  there  are  no  economic  wastes  to  be 
checked  or  evils  to  be  remedied. 

The  attention  of  the  provisional  administration  was  early  directed 
to  the  opportunity  and  necessity  for  improving  certain  economic 
conditions.    The  matters  pressing  for  consideration  were — 

1.  The  sanitation  of  the  island. 

2.  The  large  number  of  unemployed  annually  during  the  months 
of  the  dead  season  (May  to  December). 

3.  The  absence  of  roads,  harbor  facilities,  and  other  aids  to  naviga- 
tion necessary  for  the  economic  production  and  marketing  of  the 
crops. 

4.  High  cost  of  transportation  by  railroad,  wagon  road,  and  ocean- 
going vessels. 

5.  The  high  rate  of  living,  i.  e.,  food,  clothing,  rent,  building 
material,  etc..  in  the  cities  and  towns. 

6.  The  small  margin  of  profit  in  the  production  of  sugar. 

7.  The  high  interest  rate  for  money. 

8.  The  low  price  paid  for  common  labor. 

9.  Extortion  by  money  lenders  dealing  with  wage-earner-. 

10.  Unjust  restrictions  upon  commerce  and  shipping  imposed  by 
customs-house  regulations. 

11.  A  banking  law. 

12.  The  use  as  legal  tender  and  currency  of  three  different  kinds 
of  money. 

SANITATION. 

The  sanitation  of  Cuba  is  of  more  than  national  importance;  it  is 
international  and  is  made  the  subject  of  constitutional  provision  and 
treaty  stipulation,  by  both  of  which  the  National  Government  is 
bound  to  take  such  steps  as  may  be  necessary  to  prevent  "  a  recurrence 
of  epidemic  and  infectious  diseases." 


39 

The  people  of  Cuba  fully  appreciate  the  great  advantages  thai  will 
accrue  to  the  island  from  its  proper  sanitation  and  are  anxious  to 
secure  those  benefits.  The  Cubans  realize  the  necessity  and  advan- 
tages of  proper  sanitation  to  a  much  larger  degree  than  do  the  people 
of  the  United  States  in  the  communities  with  which  I  am  familiar. 
but  they  look  to  the  Government  for  the  accomplishment  of  sanita- 
tion instead  of  making  the  necessary  individual  effort. 

The  military  government  (1899-1902)  made  a  brilliant  record  of 
individual  achievement  and  administrative  excellence  in  the  matter 
of  sanitation,  but  remitted  to  the  Republic  the  enactment  of  an  ade- 
quate law  for  continuing  that  service  at  a  high  standard.  The 
Republic  by  Executive  decree  provided  for  the  organization  of  a  sani- 
tary service  coextensive  with  the  island  and  prescribed  rules  and 
regulations  for  the  performance  of  the  service.  The  Cuban  ( long 
(190G)  appropriated  a  total  of  $3,646,216  for  public  works  and  other 
objects  calculated  to  promote  sanitation  and  for  sanitary  services  in 
the  cities  and  towns  of  the  island.  The  law  promulgated  by  the 
President  provided  for  a  central  board  of  sanitation,  with  head- 
quarters in  Habana,  and  a  local  board  of  sanitation  in  each  munici- 
pality to  be  appointed  by  the  municipal  authorities,  the  expense  of 
the  sanitary  service  to  be  paid  by  the  municipalities  and  to  be  pro- 
vided for  in  the  annual  municipal  budgets.  The  revenues  available 
to  the  municipalities  were  not  sufficient  to  permit  the  apportionment 
of  the  amount  necessary  for  sanitation  and  therefore  the  National 
Government  was  called  upon  to  supply  the  deficiency.  Upon  trial 
it  was  found  that  the  plan  of  having  the  local  sanitary  officers  ap- 
pointed by  and  subject  to  removal  by  the  municipal  authoril 
resulted  in  the  sanitary  service  being  improperly  ]  erformed  or  en- 
tirely omitted.  However  much  a  man  may  believe  in  the  theory  and 
advisability  of  complete  sanitation  he  usually  objects  to  the  strict 
enforcement  of  sanitary  rules  and  regulation-  against  himself.  The 
officer  attempting  to  enforce  the  law  usually  becomes  involved  in 
difficulty  with  the  offender  and  complaints  to  higher  authority,  which 
frequently  result  in  reproofs,  restraints,  and  sometimes  dismissal 
Not  infrequently  the  offender  is  a  municipal  official  and  the  sanitary 
officers  are  unwilling  to  bring  him  to  account  for  fear  of  losing  their 
places,  or  if  they  undertake  to  secure  proper  punishment  the  local 
police  and  judiciary  are  indifferent  or  ineffective. 

Under  these  conditions  it  seemed  advisable  for  the  National  Gov- 
ernment to  be  charged  with  the  excution  as  well  as  the  responsibilty 
of  proper  sanitation.  To  accomplish  this  result  a  decree  was  issued 
nationalizing  the  sanitary  service  of  the  island.  This  decree  provides 
for  a  national  hoard  of  sanitation  charged  with  the  responsibility 
of  securing  proper  sanitation  and  given  the  authority  necessary  for 
accomplishing  that  result ;  the  local  sanitary  boar  »olished  and 


40 

substituted  by  a  chief  sanitary  officer  in  each  of  the  municipalities, 
who  is  appointed  by  the  national  board ;  these  chiefs  of  sanitation  are 
under  the  direction  and  control  of  the  national  board  and  may  be 
removed  by  the  board;  the* municipalities  are  required  to  devote  one- 
tenth  of  their  total  revenue--  to  defraying  expenses  of  sanitation;  the 
money  is  paid  to  the  national  treasury  and  made  available  for  the 
intended  purpose;  the  cosi  of  sanitation  in  the  municipalities,  in 
excess  of  the  amount  conl  ributed  by  the  municipalities,  is  defrayed  by 
the  National  Government;  penalties  are  prescribed  for  violations 
of  the  sanitary  rules  and  regulations  and  may  lie  imposed  by  the  chief 
sanitary  officer  of  the  municipality,  but  appeal  may  be  taken  by  the 
alleged  offender  to  the  courts.  The  new  organization  is  rapidly  ap- 
proaching completion,  and  if  the  plan  is  successful  it  will  doubtless 
lead  to  the  creation  of  a  new  executive  department,  to  be  known  as 
the  "  Department  of  sanitation." 

The  importance  of  sanitation  to  Cuba  is  not  confined  to  the  health 
of  its  inhabitants;  it  has  a  direct  bearing  upon  its  development  and 
commerce.  Cuba  is  capable  of  sustaining  a  population  many  times 
the  size  of  the  present  number  of  inhabitants,  but  it  will  be  impossible 
to  secure  such  a  population  of  persons  who  are  immune  to  yellow 
fever  and  other  tropical  diseases  which  may  be  averted  by  proper 
sanitation.  Consideration  must  also  be  given  the  fact  that  it  will 
be  of  little  use  to  construct  roads,  improve  harbors,  erect  light-houses, 
etc.,  if,  annually,  the  ports  of  the  world  are  quarantined  against  the 
ports  of  Cuba.  Ships  will  not  seek  to  enter  the  harbors  of  the  island 
if  thereafter  they  are  debarred  from  entering  the  harbors  of  other 
countries.  When  the  Panama  Canal  is  completed  the  seaports  of 
Cuba  will  be  visited  by  many  ships  destined  for  passage  through  the 
canal,  but  these  ships  will  avoid  Cuba  if  visiting  the  island  debars 
them  from  entering  the  canal.  The  Cubans  appreciate  all  phases 
of  this* question,  and  the  plan  of  making  the  sanitary  service  a  na- 
tional matter  received  the  hearty  approval  of  the  public  at  large. 

TRANSPORTATION. 

General  economic  principles  and  the  special  conditions  existing 
in  Cuba  impelled  the  belief  that  the  basis  of  permanent  improvement 
was  the  construction  of  roads,  the  improvement  of  the  harbors,  and 
the  placing  of  light-houses,  buoys,  and  other  aids  to  navigation  cal- 
culated to  induce  -hipping  to  frequent  the  coast. 

The  principal  products  of  Cuba — sugar,  tobacco,  timber,  fruits, 
vegetables,  and  iron  ore — find  their  market  in  foreign  countries,  and 
must  be  hauled  from  the  place  of  production  to  one  of  the  harbors 
of  the  coast  that  can  be  entered  by  ocean-going  craft  and  after  being 
loaded  on  such  vessels  transported  to  markets  across  the  sea. 


41 

There  are  at  least  forty  harbors  on  the  coast  of  Cuba  that,  at  rela- 
tively small  expense,  can  be  improved  sufficiently  to  be  entered  by 
ocean-going  vessels.  At  present  six  harbors  are  available  for  such 
purpose,  and  none  of  these  are  adequately  equipped  for  easily  and 
quickly  handling  cargoes,  and  all  of  them  need  dredging.  These 
harbors  are  reached  from  the  interior  by  railroads  and  from  along 
the  coast  by  small  sailing  craft.  Many  portions  of  the  island  are 
not  as  yet  supplied  with  railroad  facilities,  and  the  cost  of  transpor- 
tation by  rail  is  great. 

Cuba  is  annually  subjected  to  a  great  economic  waste  by  reason 
of  the  lack  and  cost  of  inland  transportation.  On  the  l-i  of  October, 
1906,  there  were  less  than  500  miles  of  macadamized  road  in  the  en- 
tire island.  The  small  island  of  Jamaica  has  1,000  miles  of  macad- 
amized road.  The  products  of  Cuba  are  hauled  to  the  markets  over 
trails  that  are  barely  passable  during  the  dry  season  and  absolutely 
impassable  during  the  rainy  season.  In  many  localities  it  is  impos- 
sible to  transport  the  products  in  wagons  or  carts  and  necessary  to 
pack  them  on  horses  or  mules.  Where  carts  can  be  used  it  i  -  neces- 
sary to  employ  from  four  to  ten  oxen,  horses,  or  mules  where  two 
would  be  sufficient  if  good  road-  exist  d.  Days  arc  spent  in  hauling 
a  load  to  market  where  hours  would  be  sufficient  if  the  road-  were 
good. 

The  sugar  mills  of  the  island  are  sufficiently  far  apart  to  require 
that  the  greater  portion  of  the  cane  raised  must  be  transported  for  a 
considerable  distance  in  order  to  be  ground.  Owing  to  the  diffi- 
culties of  wagon  transportation  a  large  portion  of  the  cane  is  hauled 
from  the  colonies  to  the  mills  on  the  railways.  The  rates  of  railroad 
transportation  are  high,  and  when  good  highways  are  provided  a 
large  saving  to  the  agriculturists  will  result. 

I   NEM  PLOI  ED. 

Cuba  is  dependent  upon  the  agricultural  products  with  the  excep- 
tion of  it-   forests  and    iron   ore     for  the   production   of  wealth.      It- 

principal  agricultural  product  is  sugar  cane.  The  cane,  when  first 
planted,  matures  in  about  eighteen  months,  and  thereafter  is  pro- 
duced without  replanting  up  to  fifteen  years.     It  is  seldom  necessary 

to  clean  out   the  weeds  more  than  once  a  year.     The  cutting,  hauling, 

and  grinding  season  lasts  from  about  the  middle  of  December  until 
the  beginning  of  the  rainy  season,  which  usually  starts  early  in  May. 
The  cane  is  cut  by  hand,  and  during  the  entt ing  season  a  large  number 
of  men  are  employed.  They  work  from  daylight  until  darkm 
on  all  plantations,  and  some  estates  are  fitted  out  with  electric  lights 
to  enable  the  cutting  to  proceed  during  the  nighttime.  This  season 
of  the  year  is  the  period  of  growth  and  harvest    ("V  tobacco,  fruit, 


42 

and  vegetables.  The  harvest  being  completed  there  is  but  little  to 
do  od  the  9ugar  estates,  fruit  and  vegetable  farms,  and  therefore 
about  7.')  per  <cnt  of  the  men  necessary  to  harvest  these  crops  become 
idle.  The  money  they  hare  been  able  to  save  from  their  earnings 
during  the  crop  season  is  hardly  sufficient  to  maintain  them  during 
the  remaining  six  mouths  of  the  year  and  is  usually  improvidently 
expended.  The  tobacco  crop  furnishes  employment  for  a  longer 
period  of  each  year,  as  the  preparation  of  the  leaves  f<>r  market 
requires  numerous  handlings  and  constant  attention,  but  does  not 
provide  employment  for  many  more  persons  than  are  engaged  in 
raising  the  crop.  Practically  all  of  the  cane  cutter-  are  without 
employment  for  six  months  in  the  year,  and  by  August  arc  without 
money  or  means  of  support  for  themselves  and  families.  The  most 
important  economic  question  in  Cuba  is  to  secure  employment  for 
this  large  number  of  men  during  the  six  months  intervening  between 
the  harvest  periods. 

ROAD  CONSTRUCTION — EFFECT  ON  PUBLIC  TRANQUILLITY  AND  TRADE. 

Under  these  conditions  the  proper  course  for  the  Government  to 
pursue  was  plain,  viz,  to  increase  road  construction  and  other  public 
works  during  the  dead  season,  and  orders  were  issued  to  the  depart- 
ment of  public  works  to  prepare  a  general  plan  for  a  system  of  mac- 
adamized roads  throughout  the  island.  The  torrential  rains  of  the 
Tropics  make  it  unwise  to  construct  dirt  roads.  The  instructions  to 
the  department  of  public  works  were  to  plan  a  system  of  roads  which 
should  consist  of  a, highway  running  east  and  west,  approximately 
through  the  center  of  the  island,  with  branch  roads  running  north 
and  south  to  a  harbor  on  the  coast,  with  at  least  one  harbor  on  the 
north  and  one  on  the  south  coast  of  each  of  the  6  provinces  into  which 
the  island  is  divided;  the  equipment  of  said  harbors  for  handling 
cargoes  easily  and  quickly;  and  the  erection  of  light-houses  and  plac- 
ing of  buoys  along  the  coast  where  needed,  thereby  inducing  ocean- 
going crafts  to  frequent  the  coast  and  securing  the  competition  n< 
sary  to  reduce  the  price  of  ocean  transportation:  at  the  same  time  the 
increased  traffic  resulting  from  the  development  of  the  country  will 
give  ample  compensation  to  the  railroad  and  steamship  lines  for  such 
reduction.  In  attempting  to  execute  these  orders  the  department  of 
public  works  found  itself  without  necessary  personnel  and  equipment, 
but  these  were  supplied  as  soon  as  possible.  The  provisional  admin- 
istration desired  to  have  everything  in  readiness  to  commence  work 
on  this  large  endeavor  at  the  close  of  the  sugar-harvesting  season  in 
May,  1907,  but  the  work  was  retarded,  at  first  by  the  fear  that  the 
national  revenues  would  be  diminished  as  a  result  of  the  revolution 
and  cyclone,  and,  second,  by  the  difficulty  in  securing  competent  per- 
sonnel for  drafting  the  plans  and  specifications. 


43 

While  the  plans  were  being  made,  effort  was  made  to  locate  con- 
tractors with  sufficient  means  and  machinery  to  do  the  work  which 
would  be  entered  upon  during  the  present  fiscal  year,  and  it  was 
found  that  there  were  only  a  few  contractors  so  equipped  and  that 
they  did  not  possess  sufficient  amount  of  machinery  to  do  the  desired 
amount  of  work.  Thereupon  the  Government  decided  to  contraci  as 
much  of  the  work  as  possible  and  to  do  the  remainder  for  the  current 
fiscal  year  by  administration.  This  necessitated  the  purchase  of  a 
large  amount  of  road-making  machinery,  such  as  -team  rollers, steam 
shovels,  graders,  traction  trains,  etc.  Considerable  time  passed  be- 
fore the  Government  and  the  contractors  could  secure  the  accessary 
machinery  -in  fact,  all  that  is  required  has  not  yel  been  delivered, 
but  much  of  it  has  been  received  and  other  deliveries  are  contracted 
for  and  are  being  made  from  time  to  time.  Bids  were  called  for  by 
public  advertisement,  but  it  was  impossible  to  get  the  work  started 
until  late  in  July,  and  it  was  the  latter  part  of  August  before  ii  was 
fairly  inaugurated. 

It  was  impossible  to  completely  execute  the  plan  of  public  improve- 
ment above  outlined  within  the  period  fixed  for  the  continuance  of 
the  provisional  administration,  but  the  general  plan  is  adopted  and 
has  already  received  unanimous  approval.  The  detail  plans,  specifi- 
cations, etc.,  will  be  completed,  the  public  works  department  suffici- 
ently expanded  and  trained  personnel  secured,  the  machinery  pur- 
chased, delivered,  and  installed,  and  the  work'  sufficiently  advanced 
to  make  it  fairly  certain  that  the  plan  will  be  carried  out  within  a 
reasonable  period.  Induced  by  Ike  adoption  of  Ike  general  plan  and 
the  call  for  bids,  a  number  of  contractors  have  purchased  thi 
sary  machinery  for  road-making  plants.  The  private  concerns  have 
invested  large  sums  of  money  1n  purchasing  outfits  for  executing  con- 
tracts on  this  work  and  will  materially  aid  in  inducing  the  contin- 
uance of  the  work. 

Attempt  wa.s  made  to  ratably  distribute  thi-  work  in  all  the 
provinces  and  to  begin  work  in  each  at  about  the  same  time.  The 
obstacles  to  overcome  were  so  numerous  that  it  became  uecessar 
concentrate  effort  on  one  province  at  a  time.  Pinar  del  Rio  was 
selected  a-  the  first,  largely  because  it  was  feared  at  that  time  that 
the  tobaeco  crop  of  that  province  for  the  year  L906  would  be  nearly 
if  not  a  total  failure:  timely  rains,  however,  made  the  crop  satisfac- 
tory in  quantity  ami  quality.  As  soon  as  the  preliminary  work  in 
Pinar  del  Rio  Province  was  completed,  Habana  Province  was  taken 
up,  and  shortly  thereafter  Mfatanzas  Province.     The  work  i-  not  yet 

fully    started    in    Santa    (Mara.    Camagiiey.    and    Oriente    provi] 
although  work  on  some  of  the  road-  commenced  late  in  the  season 
and  other  roads  are  being  projected. 

Three  principal  objects  were  contemplated  by  starting  these  public 
improvements — the  development  of  the  country,  the  reduction  of  the 


44 

economic  waste  resulting  from  the  difficulties  of  transportation,  and 
the  improvement  of  (he  industrial  situation  bj  providing  employment 
for  ;i  Large  number  of  men  who  would  otherwise  be  idle.  The  belief 
was  entertained  thai  the  construction  of  these  roads  would  also  tend 
to  preserve  public  tranquillity  and  substantially  promote  trade  and 
commerce. 

PI  BLIC    N  E<  ESS]  ITES  AND   l  SIPROVEME*  l  8. 

The  public  necessities  did  not  permit  the  work  of  public  improve- 
ment to  be  confined  to  the  rural  districts.  There  is  great  need  in  Cuba 
for  national,  provincial,  and  municipal  betterments,  such  as  school- 
houses,  post-offices,  and  other  public  edifices.  The  cities  and  towns 
need  public  buildings,  waterworks,  sewers,  pavements,  parks,  etc. 
The  existing  structures  devoted  to  governmental  or  public  use  are 
largely  the  old  Spanish  forts,  jails,  churches,  convents,  ete.,  and  need 
to  be  remodeled  or  reconstructed.  Much  of  this  work  was  done  by 
the  military  government  and  the  Republic,  but  the  buildings  are  old 
and  not  adapted  to  the  purposes  to  which  they  are  devoted,  and  many 
of  them  are  allowed  to  fall  into  disrepair.  The  cyclone  of  October, 
190G,  damaged  practically  all  and  demolished  some  of  them. 

ASSISTANCE  TO  MTJNICTPAIJTIES. 

The  necessity  of  municipal  improvements  is  Aery  great.  It  is 
reasonable  to  estimate  that  it  will  take  not  less  than  $75,000,000  to 
provide  the  municipalities  of  Cuba  with  the  public  improvements 
desired  and  needed  by  the  inhabitants. 

In  distributing  the  powers  of  taxation,  the  laws  of  Cuba  do  not 
provide  means  for  the  municipalities  to  secure  sufficient  revenues  to 
provide  for  municipal  improvements  considered  essential  to  modern 
life  and  which  are  usually  paid  for  with  municipal  funds.  This  will 
be  remedied,  in  part,  by  the  new  law  of  municipalities.  Meanwhile 
the  provisional  administration  continues  the  policy  pursued  by  the 
Spanish  administration,  the  military  government,  and  the  Republic, 
of  using  a  reasonable  proportion  of  the  national  funds  in  aiding  the 
municipalities,  but  when  possible,  the  municipalities  have  been  re- 
quired to  participate  in  the  cost  by  appropriation  of  municipal  funds 
or  private  subscription,  and  also  to  make  provision  for  the  mainten- 
ance of  the  improvement  at  the  expense  of  the  municipality.  In  order 
to  secure  proper  investigation  and  determination  of  the  innumerable 
applications  for  aid  to  municipalities  and  to  prevent  improvident  ex- 
penditures, a  board  of  municipal  aid  was  appointed  consisting  of 
Lieut.  Cols.  William  M.  Black,  president.  E.  St.  J.  (treble,  and  Maj. 
J.  R.  Kean,  all  of  the  United  States  Army,  to  whom  these  applications 
are  referred  for  examination  and  recommendation.  This  board  made 
an  examination  of  the  receipts  and  expenditures  of  the  various  nui- 


45 

nicipalities,  and  found  that,  though  in  general,  a  wiser  administration 
of  municipal  funds  would  make  provision  for  the  municipal  Deeds, 
excepting  those  requiring  the  immediate  expenditure  of  large  sums, 
such  as  waterworks,  etc.,  under  existing  condition-  a  continuation  of 
State  aid  is  advisable. 

All  petitions  from  private  citizens  are  referred  to  the  authorii 
of  the  respective  municipalities  for  recommendation.  A.llotm< 
of  funds  arc  recommended  for  accessary  work,  as  far  as  practicable, 
in  such  a  manner  as  to  be  equitable  throughout  the  island.  Action 
has  been  taken  on  107  petitions.  Forty-one  cases  were  Favorably 
reported  on;  34  cases  wen-  disapproved.  In  the  other  cases  final 
action  has  not  yet  been  had.  The  adopted  policy  is  to  provide  first, 
when  possible,  the  works  mosl  needed  for  sanitation,  such  a-  water 
supplies,  slaughterhouses,  cemeteries,  markets,  etc. 

Ti;  \])K    AND    COM  MERCE. 

The  trade  and  commerce  of  the  island  have  been  greatly  stimulated 
by  the  distribution  among  all  classes  of  tie'  large  amount  of  money 
expended  for  public  improvement.  The  laboring  man.  from  neo 
sity,  expends  his  money  as  soon  as  received  in  purchasing  supplies 
for  himself  and  family.  A.S  before  noted,  this  year  has  been  our  .,1* 
exceptionally  long  and  continued  drought.  The  tobacco  crop  did 
not  "  cure  "  as  rapidly  as  usual  and.  in  fact,  is  not  yet  marketed.  The 
revolution  of  190G  induced  many  people  Inning  loan-  in  Cuba  to 
refuse  extensions  and  insist  on  payment.  Ordinarily  under  these 
conditions  the  trade  and  commerce  of  the  island  would  diminish, 
yet  for  the  nine  months  from  December  1,  1906,  to  Angu-t  31,  L907, 
inclusive,  the  receipts  of  the  Habana  custom-house  -how  an  increase 
over  the  receipts  for  the  same  period  of  the  year  L905  6  of  $536,- 
044.80,  being  an  average  monthly  increase  of  $59,560.53.  By  August, 
190T,  the  worlc  of  road  building  and  other  public  improvements 
was  well  under  way,  and  the  effect  upon  business  is  shown  by  the 
fact  that  custom-house  receipts  for  the  island  for  September  and 
October  amounted  to  s.~>,l31,524.7G,  being  a  monthly  average  incr 
of  $3f;0.1.".:,,.02. 

LIQUIDATION   OF   PRIVATE    INDEBTEDNESS    BY    PLANTERS. 

The  events  in  Cuba  during  L906  revolution,  retirement  of  the 
Palma  Administration,  and  the  cyclone  naturally  injured  private 
credits  and  induced  many  foreign  and  domestic  creditors  i"  seek  to 
collect  their  accounts.  This  Liquidation  of  private  indebtedness  has 
continued  through  the  year  and  a  large  amount  of  Indebtedness  has 
been  discharged.  Under  ordinary  circumstances  this  period  oi  li'i"'- 
dation  would  have  terminated  at  the  end  of  a  year,  or  by  October, 


46 

L907;  but,  unfortunately,  in  October  of  this  year  came  the  panic  and 
the  resulting  world-wide  money  stringency.  Owing  to  the  Liquida- 
tions of  the  year,  the  panic  did  not  produce  a  financial  crisis  in  Cuba's 
business  circles,  bul  it  further  continued  the  demands  for  payments 
and  will  undoubtedly  extend  tin'  period  of  enforced  liquidations  at 
leasl  another  year.  These  period-  of  general  payment  of  debts  are 
exceedingly  beneficial  and  are  usually  recognized  as  such  after  they 
are  completed,  but  while  the  liquidation  is  going  on  individuals  suf- 
fer and  considerable  discontent  prevails. 

The  severities  of  the  situation  in  Cuba  have  been  reduced  to  a 
minimum  by  the  expenditures  for  public  works  and  the  wonderful 
fertility  of  the  island.  These  combined  have  kepi  trade,  commerce, 
and  industrial  activity  up  to,  if  not  beyond,  the  average.  The  liquida- 
tion now  in  progress,  when  accomplished,  will  put  the  commercial 
and  industrial  interests  of  Cuba  on  a  conservative  and  solid  founda- 
tion for  the  first  time  in  the  history  of  the  island.  During  the  many 
years  of  intermittent  warfare  by  which  the  Cubans  gained  their  in- 
dependence, and  during  the  Spanish-American  war,  conditions  were 
abnormal;  the  time  of  the  military  government  was  a  period  of 
readjustment  and  reorganization,  during  which  normal  conditions 
could  neither  be  reached  nor  ascertained ;  during  the  first  three  years 
of  President  Palma's  Administration  there  was  an  abnormal  stimu- 
lus to  trade  and  expansion  of  credit  resulting  from  the  distribution 
among  the  Cubans  of  $2,544,750,  ostensibly  for  the  purchase  of  the 
arms  held  by  the  late  soldiers  of  the  armies  of  liberation ;  and  shortly 
thereafter  the  payment  of  $27,716,248.59  to  the  soldiers  of  said 
armie.s  for  military  services  in  the  wars  with  Spain,  and  at  a  later 
date  the  payment  of  $16,553,869.59  in  cash  and  $10,617,000  in  bonds 
in  further  compensation  for  said  services,  making  a  total  of  $57,431,- 
868.18.  This  money  was  distributed  so  long  after  the  service  was 
rendered  that  the  recipients  had  forgotten  how  hard  they  had  labored 
to  earn  it.    With  most  of  them  it  was  "  easy  come,  easy  go.v 

In  1903  the  price  of  sugar  was  high;  the  yield  per  acre  ami  total 
output  in  Cuba  was  the  largest  in  the  history  of  the  island  up  to  that 
time;  the  profits  of  the  planters  were  great.  In  1903  the  money  mar- 
kets were  glutted  with  money  seeking  investment,  and  the  knowledge 
of  the  probable  profits  of  sugar  production  in  Cuba  caused  a  flood  of 
money  to  the  Island  for  investment  in  that  industry.  Sugar  mills 
sprung  up  and  cane  fields  planted  all  over  the  Island  with  more  at- 
tention given  to  early  completion  than  to  economical  expenditure. 

The  establishment  of  the  Republic  afforded  opportunity  for  thou- 
sands of  Cubans  to  hold  official  positions  with  rank  and  emolument. 

Under  these  circumstances  it  was  inevitable  that  unnecessary 
credit  would  be  tendered  and  accepted  and  extravagant  expenditures 
incurred;  such  has  been  the  result  in  all  countries  at  all  times  under 


47 

•similar  conditions.    But  now  the  money  distributed  by  the  Govi 
ment  has  been  spent;  the  notes  given  for  money  Loaned  to  build  sugar 
mills  and  plant  cane  fields  have  matured,  and  the  period  of  Liquida- 
tion set  in  something  more  than  a  year  ago.    The  sugar  industry  in 
Cuba  is  in  a  flourishing  condition  and,  a~  an  industry,  will  promptly 
and  easily  meet  all  the  demands  of  liquidation.    This  results  from  the 
fact  that  many  of  the  estates  are  free  from  mortgage  or  owe  qo  i 
than  they  can  readily  handle.    There  are  other  mills  and  estates  that 
are  not  as  well  conditioned,  having  borrowed  more  than  justifiable  or 
omitted  to  reduce  the  indebtedness  in  previous  year-.     These  i 
only  time  and  economical  administration  to  pay  out   in  full. 

The  properties  are  fine  investments,  being  oew  and  modern,  and 
the  conditions  for  growing  cane  arc  ideal.  Their  is  no  possibility  «»f 
a  total  crop  failure  such  as  in  past  times  periodically  visited  tin-  agri- 
cultural portions  of  the  United  States.  New  cane  fields  are  started 
every  year.  The  world's  consumption  of  sugar  increases  everj  year. 
Theoretically  the  outlook  for  the  sugar  industry  i>  most  e  couraging. 

The  principal  difficulty  with  which  the  sugar  planters  contend  is 
the  expense  incurred  in  preparing  the  fields,  cutting  and  getting  the 
cane  from  the  field  to  the  mill,  grinding  and  converting  into  sugar, 
transporting  to  market,  and  selling  the  product.  This  requires  a 
large  amount  of  money  and  must  be  done  in  about  six  months.  Dur- 
ing the  remainder  of  the  year  the  mills  are  practically  closed  ami  the 
estates  are  kept  up  at  comparatively  small  expense.  If  the  money 
can  be  obtained  at  reasonable  rates,  it  is  good  business  to  borrow  for 
the  period  of  the  harvest  season  instead  of  making  it  a  permanent 
addition  to  the  capital  invested.  In  an  ordinary  year  the  money  to 
make  the  crop  is  wanted  in  November.  At  that  season  of  the  year 
money  is  in  demand  in  the  United  State-  to  move  the  crops  of  cereals 
and  equally  in  demand  in  Europe  to  purchase  these  crops.  It  is  also 
near  the  end  of  the  year  when  the  annual  balances  arc  -truck  in  all 
lines  of  business  and  banks  throughout  the  world  are  drawing  in  their 
temporarily  outstanding  accounts  and  overdrafts  in  order  to  i 
their  annual  business. 

The  usual  practice  is  that  the  planter  applies  to  a  money  Lender, 
cither  directly  or  through  the  lender's  agent,  on  or  about  Augu-t  1 
for  a  certain  amount  of  money  required  to  help  him  through  the 
season,  i.  e.,  he  will  require  during  the  months  of  August  and  Sep- 
tember money  for  repair  of  machinery  actually  installed,  or  money 
for  the  installation  of  new  machinery,  also  considerable  money  for 
the  preparation  of  the  fields  for  the  planting  of  cane.  In  this 
the  planter  not  only  offers  to  compensate  the  money  Lender  by  a  pay- 
ment of  good  interest  ranging  from  8  per  rent  to  II  percent  hut 
also  binds  himself  to  sell  to  the  lender  the  sugar  which  i-  ground  until 
the  indebtedness  is  liquidated,  en  which  the  Lender  an  ftddi- 


48 

tional  commission  as  selling  agent.  The  loans  are  i-< - j » :i  1  *  1  all  the 
way  Prom  January  to  June  or  .July.  i.  e.,  as  the  3ugar  i-  3old  either 
the  whole  or  pari  <»r  the  receipts  therefrom  is  applied  to  the  liquida- 
tion or  reduction  of  the  actual  loan  existing.  In  Cuba,  as  in  all  other 
countries,  the  large  planter  whose  plantation  is  uot  mortgaged  to  the 
limit,  or  even  beyond  the  limit,  has  do  difficulty  whatever  in  obtain- 
ing money  and  credit,  but  the  small  planter,  or  even  the  large  planter 
who  is  not  so  fortunately  situated,  is  under  the  double  disadvantage 
of  having  difficulty  in  obtaining  credit,  but,  if  obtained,  the  intei 
mid  commissions  collected  are  so  enormous  thai  he  is  fortunate  indeed 
if  sufficient   funds  remain  to  fairly  compensate  him  for  his  labor. 

When  the  high  cost  of  selling  the  sugar  is  added  to  the  high  a 
transportation  by  land  and  sea  of  the  cane,  the  supplies  for  the 
estates,  the  sugar,  etc.,  it  will  be  seen  that  the  present  low  price  of 
sugar  gives  the  Cuban  producer  little  margin  of  profit.  The  out- 
look for  the  season  of  l(.">7-s  is  that,  owing  to  a  reduced  yield 
throughout  the  world,  the  price  of  sugar  will  be  higher  than  that 
now  prevailing.  In  anticipation  of  higher  prices  the  sugar  mills  are 
agreeing  to  pay  higher  prices  for  cane.  If  the  price  of  sugar  % 
up  the  situation  of  the  Cuban  planters  will  be  relieved,  temporarily 
at  least,  and  if  the  profits  realized  are  devoted  to  reducing  existing 
indebtedness,  a  partial  permanent  relief  will  be  secured.  Good 
roads  and  enough  of  them  will  effect  a  further  saving  by  reducing 
the  cost  of  inland  transportation  while  harbor  and  coast  improve- 
ments ought  to  secure  sufficient  competition  to  reduce  the  rates  of 
ocean  transportation. 

EXCESSIVE    INTEREST   RATE. 

There  remains  to  be  solved,  however,  the  question  of  permanently 
reducing  the  excessive  interest  rare.  On  behalf  of  the  money  lenders 
consideration  must  be  given  to  the  fact  that  they  can  not  put  out 
at  interest  for  twelve  months  in  the  year  the  large  sum  necessary  to 
supply  the  demand  for  many  during  the  cropping  season.  A  large 
share  of  the  money  must  therefore  be  borrowed  in  foreign  countries 
and  considerable  expense  incurred  in  bringing  the  cash  to  Cuba: 
transportation  and  insurance  rates  are  high,  and  as  the  money  is  or- 
dinarily returned  at  the  end  of  six  months  these  costs,  both  in  and 
out.  must  be  included  in  the  charge  for  the  use  of  the  money  for  that 
short  period.  While  under  normal  conditions  it  i-  easy  \"  secure 
more  than  sufficient  funds  to  make  the  crops  in  Cuba,  yet  the  manu- 
facture of  sugar  by  the  modern  methods  now  adopted  is  a  compara- 
tively new  venture  in  Cuba,  and  a  good  many  of  the  new  concerns 
have  not  had  time  to  establish  their  credit.  They  have  not  yet  dem- 
onstrated the  success  of  their  :.t.  and  the  banker  or  money 


49 

lender  must  rely  upon  his  own  established  credit  to  float  the  paper 
of  such  manufacturers.  From- this  it  results  that  an  attractive  in- 
terest rate  must  be  offered  the  foreign  banker  and  the  ]« ><n  1  lender 
must  not  only  recoup  himself,  but  make  certain  that  his  guaranty 
will  not  fail.  In  short,  the  lender  truthfully  says:  ';  The  cost  to  me 
is  high  and  I  must  protect  my  credit." 

Banks  ordinarily  make  loans  from  their  deposits  on  which  they  pay 
no  interest,  or  a  very  low  rate.  There  are  in  Cuba  many  millions  of 
dollars  hoarded  in  the  safes  and  houses  of  the  people.  It  is  a  com- 
paratively small  per  cent  of  even  the  business  men  of  the  island  who 
deposit  their  money  in  the  banks.  This  results  from  the  secret  ive- 
ness  of  the  people,  induced  in  times  past  by  fear  of  extortion,  enforced 
loans,  confiscation,  excessive  taxation,  etc.  It  takes  time  and  a  high 
degree  of  confidence  to  overcome  this  practice  of  generation-.  1  am 
convinced  that  if  the  money  in  Cuba  now  withdrawn  from  circulation 
and  retained  in  the  possession  of  the  owners  was  deposited  in  the 
banks  and  the  money  used  in  general  business  was  passed  through 
the  banks  to  the  extent  prevailing  in  other  countries,  there  would  be 
available  to  the  banks  ample  funds  from  which  to  advance  the  money 
required  to  make  the  sugar  crop  and  plant,  raise,  and  cure  the  tobacco 
crop;  and  as  this  money  would  cost  the  banks  little  or  nothing,  there 
would  be  an  immediate  reduction  in  the  interest  rates  to  the  planters 
and  business  men.  The  first  step  in  securing  this  economic  and  ad- 
vantageous reform  is  to  secure  for  the  banks  general  and  unwavering 
confidence  by  seeing  to  it  that  they  are  entitled  to  that  confidence. 

BANKING    LAW. 

There  is  no  banking  law  in  Cuba.  All  the  banks  of  the  Island 
are  private  institutions  and  rely  for  credit  upon  their  established 
reputation  and  to  known  probity  and  means  of  the  men  by  whom 
the  bank  is  owned  and  operated.  A  good  banking  law  adapted  to 
the  conditions  in  Cuba,  properly  regulating  their  organization,  pro- 
viding for  thorough  inspection,  requiring  adequate  reserve  fund  and 
securing  for  them  the  known  approval  and  confidence  of  the  Govern- 
ment would  be  of  great  service  to  the  banks  and  of  inestimable  ad- 
vantage to  the  Island,  for  it  would  within  a  short  period  of  time,  if 
not  immediately,  bring  to  the  banks  the  large  amount  of  money  now 
withheld.  The  existence  of  these  private  hoards  is  known;  their 
amounts  can  only  be  guessed.  That  the  total  must  be  a  vast  sum  is 
shown  by  the  fact  that  the  balance  of  trade  between  Cuba  and  the 
other  countries  with  which  it  deals  has  for  the  pasl  six  years  been 
greatly  in  favor  of  Cuba.  If  the  balance  of  trade  with  a  country  is 
continuously  in  favor  of  that  country,  such  country  eventually  be- 
comes rich,  unless  the  money  so  realized  is  withdrawn  by  nonresi- 

23706—08 1 


50 

dent,  proprietors,  investors,  etc.,  or  carried  abroad  by  residents  and 
-pent  in  foreign  sojourn  and  travel.  It  is  a  fad  that  much  of  the 
money  realized  from  the  products,  industries,  trade  and  commerce  of 
Cuba  is  withdrawn  from  the  island  because  of  the  large  foreign  hold- 
ings in  its  factories,  mills,  commercial  houses,  railroads,  and  other 
public  service  corporation-.  Thig  ie  the  inevitable  result  of  the  neces- 
sity for  bringing  in  foreign  capital  at  the  close  of  the  struggle  for 
independence  and  the  Spanish-American  war.  This  will  gradually 
be  eliminated  as  the  residents  of  the  Island  acquire  the  means  and 
inclination  to  invest  in  home  enterprises,  and  the  process  is  already  at 
work. 

There  is  one  phase  of  the  matter  that  should  be  remedied  and  would 
be  corrected  by  an  adequate  and  safeguarded  banking  system.  Many 
of  the  public-service  corporations,  large  mills,  and  manufactories,  and 
not  a  few  commercial  institutions,  do  their  banking  with  banks  in 
foreign  countries,  shipping  the  cash  or  remitting  through  the  local 
banks' all  in  excess  of  the  amount  used  to  defray  current  expenses,  and 
not  infrequently  to  such  extent  as  to  require  drawing  on  these  foreign 
deposits  to  meet  cost  of  operation.  The  surplus  out  of  which  is  paid 
interest  on  bonds  and  dividends  is  deposited  in  and  used  by  the 
foreign  banks  during  the  intervals  between  the  time  of  deposit  and 
the  payment  to  bond  and  stock  holders.  If  these  funds  were  avail- 
able to  the  banks  of  Cuba  upon  the  same  terms  as  the  foreign  banks 
secure  them,  a  reduction  in  interest  rate  would  be  inevitable  without 
reduction  in  the  profits  of  the  banks. 

AGRICUIiTT  KAT.     HANK. 

There  is  a  desire,  often  expressed  by  planters,  for  the  establishment 
of  an  agricultural  bank  along  the  lines  of  the  Mexican  Bank,  or  the 
agricultural  bank  provided  for  in  the  recent  law  of  the  Philippine 
Commission,  or  the  Credit  Foncier.  of  France.  This  proposal  requires 
careful  study,  investigation,  and  consideration.  Among  other  things, 
it  requires  decided  changes  in  the  law  of  mortgages  and  foreclosure 
proceedings.  There  are  serious  objections  to  the  Government  going 
into  the  banking  and  loaning  business,  but  there  are  also  serious 
objections  to  the  principal  industries  of  the  island  being  subject  to 
exorbitant  interest  rates.  There  has  been  also  an  insistent  suggestion 
from  individual  planters  that  the  Government  loan  the  planters 
money  directly  from  the  national  treasury.  Numerous  other  sugges- 
tions have  been  made  as  to  ways  and  means  for  assisting  the  agricul- 
tural interests  of  the  island.  All  of  these  plans  require  study  either 
to  give  them  practicable  execution  or  to  establish  their  impractica- 
bility. 


51 

APPOINTMENT  OF  ADVISORY   COMMISSION   OF  AGE*  I  Ml  RI8TS. 

There  exists  in  Cuba  an  organization  of  sugar  planters  known  as 
the  "Liga  Agraria"  (Agricultural  League).  This  association  re- 
quested that  a  commission  be  selected  from  the  membership  of  the 
league  to  study,  formulate,  and  recommend  to  the  Government  such 
measures  as  wore  considered,  a  fter  due  investigation,  t<>  be  proper  and 
advantageous  for  both  the  Government  and  the  interests  they  repre 
sent.  This  seemed  to  afford  a  practical  and  appropriate  means  of 
securing  tangible  results,  and  the  request  was  granted.  The  member- 
ship was  extended  to  include  representation  for  the  tobacco  planters 
and  a  commission  appointed  composed  of  the  following  gentlemen: 
Rafael  F.  de  Castro,  president;  Gabriel  Casuso,  Manuel  Froil&n 
Cuervo,  Leopolclo  de  Sola,  Eduardo  Dolz  y  Arango,  Claudio  G.  de 
Mendoza,  Luis  S.  Galban,  Jose  .Maria  Espinosa,  Luis  Marx,  Lorenzo 
D.  Beci,  Juan  Maria  Cabada,  Roberto  B.  Hawley,  Miguel  Machado, 
and  Gabriel  Camps. 

I  record  Avith  pleasure  that  the  gentlemen  tendered  their  services 
free  of  expense  to  the  Government,  and.  upon  being  informed  that  the 
Government  felt  that  they  were  entitled  to  compensation,  replied  that 
their  determination  to  render  gratuitous  service  was  irrevocable. 

I."  \N    OK  $5,000,000   TO   15  VNKS. 

rending  the  solution  of  questions  relating  to  the  permanent  im- 
provement of  the  financial  needs  of  Cuba,  an  emergency  arose  with 
reference  to  the  supply  of  money  for  harvesting  the  sugar  and  plant- 
ing the  tobacco  crop.  To  meet  the  situation  the  Government  offered  to 
deposit  the  sum  of  $5,000,000  in  the  local  bank-.  The  reason  for  the 
offer  and  the  terms  and  conditions  are  set  forth  in  the  decree  author- 
izing the  same,  as  follows : 

Whereas  the  harvest  season  for  the  sugar  crop,  the  planting  Beason  for  tin' 
tobacco  crop,  and  the  marketing  season  Cor  the  fruit,  vegetable,  and  minor 
crops  of  the  island  of  Cuba  are  now  at  hand;  and 

Whereas  the  planters  of  Cuba  are  accustomed  to  employ  their  credit  for  a 
period  of  six  months  In  securing  the  money  necessary  to  harvest  and  market 
the  agricultural  products  of  the  Island;  and 

Whereas  a  large  portion  of  the  tobacco  crop  of  the  last  season  lias  nol  yel 
been  sold,  owing  to  the  unusual  length  <>t'  time  required  this  year  for  the  drying 
and  otherwise  preparing  said  tobacco  crop  for  the  foreign  market :  and 

Whereas  the  conditions  of  the  tnonej  market  In  foreign  countries  make  it  Im- 
practicable for  the  hanks  and  financial  Institutions  of  Cuba  to  Becure  all  of  On- 
money  required  by  the  necessities  of  the  agricultural  Industries  In  the  Island  at 
this  critical  season  of  the  year:  and 

Whereas  the  financial  condition  of  the  national  treasury  of  Cuba  is  such  as  to 
permit  the  withdrawal,  tor  the  period  ordinarily  consumed  In  harvesting  tin- 
crops,  of  a  sum  sufficient  to  supply.  In  large  pari  If  nol  In  its  entirety,  the  t  i 
sities  of  the  planters  and  overcome  the  existing  emergency;  and 


52 

Whereas  11  is  the  doty  <>f  the  Governmenl  to  adopt  Buch  reasonable  and 
mate  measures  as  will  assist,  protect,  and  promote  the  Industries  of  the  country 
ami  the  welfare  and  prosperity  of  its  citizens:  Now,  therefore,  by  virtue  of  the 
power  rested  in  me  as  provisional  gover ■  of  the  Republic  of  Cuba,  I  hereby 

Resolve,  Thai  the  sum  of  $5,000,000,  or  so  mucb  thereof  as  may  be  necessary, 
shall  be  withdrawn  From  the  national  treasury  of  Cuba  and  deposited  In  banks 
ami  banking  institutions  doing  business  In  the  Republic  of  Cuba,  not  to  be  called 
for  or  drawn  upon  until  July  15,  l!M>.s;  said  deposits  to  be  on  tbe  following  con- 
ditions : 

A  bank  or  banking  institution  of  Cuba  desiring  to  secure  a  deposit  of  any 
portion  of  said  funds  made  available  for  said  purpose  by  this  decree  shall  make 
application  therefor,  in  writing,  to  the  secretary  of  the  baclendfl  Betting  forth 
the  amount  desired  and  kind  of  security  offered  as  a  guaranty  for  repayment 
to  the  Government  of  the  funds  to  be  deposited,  as  well  as  affirmative  statement 
that  the  funds,  or  any  part  thereof,  if  so  deposited,  will  only  be  applied  to  assist- 
ing and  promoting  the  industries  of  the  island  of  Cuba.  Said  application  must 
be  presented  prior  to  November  30,  1907,  on  which  last-named  date  the  secre- 
tary of  the  hacienda  shall  submit  all  applications  received  to  the  provisional 
governor  of  the  Republic  of  Cuba  for  approval  or  disapproval.  The  Govern- 
ment reserves  the  right  to  reject  any  or  all  of  said  applications,  or  to  approve 
any  of  said  applications  in  whole  or  in  part. 

The  application  of  the  bank  or  financial  institution  of  Cuba  being  approved 
by  the  provisional  governor,  the  treasurer  of  the  Republic  of  Cuba  is  hereby 
authorized  to  deposit  in  said  bank  or  financial  institution  public  funds  hereby 
made  available  for  that  purpose  to  the  amount  authorized  by  the  provisional 
governor  of  the  Republic  of  Cuba:  Provided,  That  said  bank  or  financial  insti- 
tution shall  make,  execute,  and  deliver  a  certificate  of  deposit  in  due  and  legal 
form  acknowledging  receipt  of  such  deposit  and  binding  the  bank  or  financial 
institution  as  to  the  use  during  said  period  of  the  funds  for  the  purposes  only 
heretofore  specified  and  to  return  of  said  deposit,  when  called  for,  at  any  time 
on  or  after  July  15,  190S,  the  Government  reserving  the  right  that  in  the  event 
the  deposits  so  made  are  applied  to  other  purposes,  such  as  for  export,  etc.,  to 
withdraw  the  deposit  at  any  time  prior  to  July  15,  190S,  the  bank  or  financial 
institution  agreeing  also  to  pay  interest  at  the  rate  of  6  per  cent  per  annum 
for  the  time  said  deposit  remains  unpaid  or  not  returned  to  the  Government 
after  July  15,  1908,  the  bank  or  financial  institution  to  have  the  right  to  return 
said  deposit  to  the  National  Treasury  at  any  time  without  waiting  to  be  called 
upon  by  the  Treasury:  And  provided  further,  That  any  bank  or  financial  insti- 
tution receiving  such  deposit  shall  give  collateral  security  for  the  repayment 
thereof  by  depositing  in  the  National  Treasury  approved  bonds  of  the  kind 
hereinafter  named  and  assuming  the  obligation  to  reenforce  said  security  or 
securities  whenever  said  security  or  securities,  on  account  of  market  fluctuation, 
shall  decline  one  point  or  more  in  value. 

The. following  securities  listed,  quoted,  and  dealt  in  in  the  Habaua  Stock  Ex- 
change will  be  accepted  at  10  per  cent  less  than  the  actual  market  value  thereof 
on  the  date  when  the  deposit  is  actually  made,  but  no  security  will  be  accepted 
above  par  value : 

Bonds  of  the  Republic  of  Cuba,  1S9G-7 :  Republic  of  Cuba  (Speyer)  ;  Republic 
of  Cuba,  internal  indebtedness:  city  of  Habana,  first  and  second  mortgage:  Gas 
and  Electric  Eight  Company,  of  Habana:  Havana  Electric  Railway  Company; 
United  Railways,  consolidated. 

A  sufficient  number  of  said  bonds  must  be  deposited  as  guaranty  and  security 
to  equal  the  amount  of  the  deposit,  taking  into  consideration  the  10  per  cent 
reduction  from  said  market  value. 


53 

At  this  writing  (November  21)  the  banks  have  not  submitted  their 
proposals,  but  they  have  made  known  their  intention  to  subscribe  for 
all  the  funds  thus  made  available. 

The  effect  of  this  decree  upon  the  public  mind  and  business  inter- 
ests was  exceedingly  beneficial,  as  it  removed  whatever  doubts  or  ap- 
prehensions which  existed  and  induced  the  bankers  to  release  the 
funds  on  hand  in  their  banks. 

The  satisfaction  with  this  measure  was  communicated  to  the  Gov- 
ernment by  resolutions  of  representative  bodies,  congratulatory  mes- 
sages, etc.  From  a  number  received  I  select  and  quote  the  resolution 
of  the  Chamber  of  Commerce,  Industries,  and  Navigation  of  the  Is- 
land of  Cuba,  as  follows: 

The  chamber  of  commerce  and  the  other  financial  institutions,  as  well  as  the 
merchants  and  manufacturers  whose  names  appear  below,  have  the  honor  to 
address  this  message  to  you,  solemnly  expressing  the  satisfaction  felt  by  all 
social  classes  on  account  of  the  measure  lately  adopted  in  favor  of  the  agricul- 
ture and  industries  of  the  Island  of  Cuba  by  the  government  intrusted  to  your 
honorable  direction. 

One  of  said  measures  is  the  one  recently  adopted  with  the  view  of  putting 
In  circulation  for  a  certain  stated  period  and  without  any  Interest  the  sum  of 
$5,000,000  from  the  national  treasury;  tbe  end  contemplated  being,  and  no 
doubt  as  you  hope  it  shall  be,  to  reinspire  confidence,  to  facilitate  operations, 
and  to  develop  tbe  public  wealth. 

Kindly  accept,  Mr.  Governor,  the  expressions  of  satisfaction  which  this  mes- 
sage embodies,  and  the  assurances  of  our  most  distinguished  consideration. 

STRIKES. 

The  industrial  situation  has  been  complicated  by  numerous  strikes. 
The  first  strike  was  that  of  the  cigar  makers.  The  cigar  factories 
had  been  paying  wages  in  Spanish  gold.  The  cigar  makers  and  other 
employees  demanded  paj^ment  of  wages  in  American  currency  at  the 
same  schedule  theretofore  paid  in  Spanish  gold:  this  meant  a  10  per 
cent  increase  in  wages.  The  strike  involved  about  one-half  of  the 
factories  in  and  about  Ilabana.  Thinking  to  break  the  -hike,  the 
owners  of  the  remaining  factories  declared  a  lockout.  The  combined 
strike  and  lockout  continued  from  February  to  July.  The  strikers 
abstained  from  violence,  and  not  a  -ingle  violation  of  the  peace,  a-  a 
result  of  the  strike,  occurred.  Eventually  the  proprietors  of  the 
factories  against-  which  the  strike  had  been  declared  granted  in  full 
the  demands  of  the  workmen,  and  a  few  days  Later  the  factories  which 
had  declared  the  lockout  made  similar  concessions. 

Induced,  doubtless,  by  the  success  of  the  cigar  makers1  strike,  (he 
masons  and  plasterers  demanded  pay  in  American  currency  and  an 
"eight-hour  day."  These  demands  were  denied  by  the  contractor-. 
and  thereupon  the  workmen  in  these  trades  and  their  "helpers" 
struck.     Shortly  thereafter  the  workmen  in  the  shops  of  the  United 


Railway  Company  ;ii  Cardenas  became  incensed  :it  the  superintend- 
ent mid  demanded  his  removal,  which  being  denied,  they  increased 
their  demand  l<>  payment  of  wages  in  American  currency  at  the  n 
theretofore  paid  in  Spanish  gold  and  an  "eight-hour  day."  Th< 
demands  wen-  denied  by  the  railroad  company,  and  the  engineers, 
Bremen,  and  shopmen  struck;  also  those  of  the  Western  Railway  and 
shopmen  of  (lie  Elabana  Central. 

These  strikes  were  followed  by  strikes  in  a  number  of  the  smaller 
trades,  such  as  the  box  makers,  plumbers,  broom  makers,  and  carpen- 
ters, and  the  strike  of  the  masons  forced  manufacturers  of  cement, 
brick,  and  tile  to  close  their  factories. 

The  striking  workmen  announced  their  intention  to  abstain  from 
all  acts  of  violence  or  intimidation.  There  have  been  individual  acte 
of  violence  committed  which  the  emploj'ers  attribute  to  the  striker-. 
but  the  strikers  deny  this  and  insist  that  the  employers  are  attribut- 
ing to  them  all  violations  of  the  peace  which  take  place  at  all  times 
and  under  normal  conditions.  Investigation  shows  that  the  labor 
unions  and  the  workmen's  association  have  been  active  and  vigorous 
in  attempts  to  preserve  order  and  prevent  breaches  of  the  peace,  and 
that  they  desire  to  conduct  the  strike  without  violence.  There  has 
been,  however,  an  increase  in  violations  of  the  peace  since  the  rail- 
way and  masons'  strikes  were  inaugurated,  and  several  collisions  were 
reported  about  the  middle  of  November.  There  has  been  considerable 
ill  feeling  engendered.  Individual  strikers  and  knots  of  strikers  have 
hooted,  jeered,  and  menaced  men  who  continued  to  work.  Several  in- 
stances of  assault  and  battery  have  been  reported,  and  two  of  the  men 
assaulted  have  died  from  their  injuries.  The  largest  number  of  dis- 
turbances of  this  character  have  been  attributed  to  the  striking 
masons.  The  masons'  union  insists  that  these  offenses  have  not  been 
committed  by  the  masons,  and  that  their  union  discountenances  vio- 
lations of  the  law.  In  the  erection  of  buildings  there  are  always  a 
number  of  "helpers"  employed  to  shovel  sand,  carry  mortar,  stone, 
brick,  etc.  These  helpers  work  a  few  days  on  one  job  and  then  are 
idle  for  a  few  days,  afterwards  seeking  employment  on  some  other 
job.  Generally  they  may  be  classed  as  irresponsible  and  some  of  them 
as  vicious.  These  joined  the  strike,  and  the  authorities  attribute  prac- 
tically all  of  the  acts  of  violence  which  have  occurred  to  the  men  of 
this  class. 

The  railroads  complain  that  old  employees  who  desire  to  return  to 
work  and  new  men  whom  they  can  secure  are  subject  to  intimidation 
by  the  strikers;  that  rocks  are  thrown  at  their  trains;  that  the  track 
has  been  greased;  that  on  three  occasions  shots  have  been  fired;  that 
in  several  instances  switches  have  been  misplaced;  obstructions  placed 
on  tracks,  and  that  engines  have  been  disabled  by  cutting  of  hose  or 
removal  of  small  pieces  of  mechanism. 


55 

Shortly  after  the  death  of  one  of  the  workmen  assaulted  the 
owner  of  two  houses  under  construction  made  complaints  againsl  the 
strike  committee  to  the  effect  that  they  were  the  instigators  of  the 
attack  upon  men  working  upon  his  buildings.  The  judge  to  whom 
the  complainl  was  made,  upon  his  own  initiative,  caused  the  arrest  of 
213  men.  including  the  president  of  the  Federation  of  Labor;  all  of 
whom,  at  the  time  of  their  arrest,  were  in  the  halls  of  the  Labor 
union.  These  arrests  were  made  without  disturbance;  the  workmen 
submitted  quietly  to  the  orders  of  th<'  police.  The  audiencia  ap- 
pointed a  special  judge  to  examine  these  cases,  which  resulted  in  the 
release  of  203  of  the  workmen,  and  the  other  lo  were  held  for  trial 
under  bond  of  $2,000  each.  This  bond  was  immediately  furnished 
and  the  men  released  from  confinement.  Their  cases  will  come  before 
the  court  in  the  regular  order.  The  judge  proceeded  under  section 
567  of  the  penal  code,  which  reads  as  follow-: 

Those  who  wrongfully  combine  to  enhance  or  lower  the  price  of  labor  or 
regulate  its  conditions  wrongfully,  provided  such  combination  has  begun  to  be 
carried  into  effect,  shall  be  punished  with  the  penalty  of  arresto  mayor. 

This  penalty  shall  be  imposed  in  its  maximum  degree  on  the  leaders  and 
promoters  of  the  combination,  and  on  those  who  shall  employ  violence  or 
threats  to  insure  its  success,  unless  they  deserve  a  higher  penally  by  reason 
thereof. 

No  disorders  have  resulted  from  these  arrests,  and  the  exaggerated 
accounts  which  later  appeared  in  American  newspapers  had  no  foun- 
dation in  fact.  The  committee  of  the  strikers  continue  to  advocate 
a  peaceful  continuation  of  the  strike  and  exert  a  wholesome  control 
over  members  of  their  associations,  except  in  individual  caa  3. 

There  has  been  an  insistent  demand  from  those  accustomed  to  the 
protection  of  the  Spanish  regime  that  the  Provisional  Government 
intervene  in  the  strikes  and  compel  the  striking  workmen  to  return  to 
work;  the  Government,  however,  has  declined  to  do  this.  The  posi- 
tion taken  by  the  Government  as  to  the  rights  of  the  strikers  was  set 
forth  in  a  letter  to  the  cigar  manufacturers,  from  which  the  follow- 
ing is  quoted: 

The  strikers  decline  to  work  unless  paid  the  prices  fixed  by  them  for  their 
labor.  This  is  a  right  which  every  freeman  possesses.  They  offer  no  obstacles 
to  the  manufacturers  employing  others;  and  they  bave  not  resorted  to  violence 
or  other  unlawful  means  of  coercing  the  manufacturers  Into  compliance  with 
their  requirements.  Their  refusal  to  work  may  be  111  advised,  or  based  upon 
Imperfect  understanding,  or  misinformation,  but  so  long  as  they  conduct  them- 
selves in  orderly  manner  as  peaceable,  law-abiding  citizens.  I  can  not  Interfere 
officially,  Cor  the  occasion  for  the  exercise  of  official  powers  is  nol  presented. 

The  position  of  the  Government  as  to  the  rights  of  workmen  who 
desired  to  return  to  work,  or  to  accept  employment  with  employers 
against  whom  a  strike  was  declared,  was  set  forth  in  a  letter  to  the 
civil  governor  of  the  Province  of  Habana,  a-  follows: 

Complaints  have  reached  me  that  laborers  and  mechanics  who  wish  to  work 
are   prevented    from   so  doing  by   display   of   force  by   some  of   the  men   now  on 


56 

strike;  that  such  display  of  force  '(insists  in  surrounding  them,  applying  oppro- 
brious epithets  to  them,  and  urging  them,  In  b  hostile  manner,  not  to  go  to  work, 
and  otherwise  Intimidating  them.  Su<h  Intimidation  is  a  violation  of  the  rights 
of  the  person  affected,  and  he  is  Justified  iu  calling  for  the  police  protection  of 

his  rights  and   sin  mid   receive;  it. 

a  man's  righl  to  sell  his  labor  includes  the  right  to  select  his  employer  and  fix 

the  price,  also  to  deliver  and  perform  his  labor  When  he  is  satisfied  with  Ids  em- 
ployer and  wages.  The  law  does  not  permit  a  man  (in  tin;  absence  of  special 
contract)  to  bo  coerced  into  involuntary  servitude  for  an  unsatisfactory  em- 
ployer, or  wages,  and  equally  the  law  will  not  permit  a  man  to  be  coerced  into 
Involuntary  idleness  when  be  is  satisfied  with  his  employer  and  wages.  From 
this  it  follows  that  any  direct  or  positive  coercion  can  not  be  legally  applied  or 
permitted  in  either  instance. 

I  believe  a  large  majority  of  the  workingnien  in  Cuba  and  elsewhere  recog- 
nize these  rights  and  the  value  they  are  to  them  as  well  as  to  the  community  at 
large.  Under  normal  conditions  these  rights  are  apparent  \<>  everyone,  but  dur- 
ing a  strike  they  are  frequently  ignored  or  violated  by  reason  of  excitement, 
passion,  or  prejudice. 

You  will  therefore  please  issue  the  necessary  orders  to  the  proper  authorities 
to  prevent  the  illegal  conduct  of  which  complaint  is  made  and  forward  a  copy 
of  the  instructions  issued  by  you  to  the  committees  of  the  strikers  for  their  in- 
formation and  guidance. 

Soon  after  the  railway  strikes  were  declared  newspaper  dispatches 
stated  that  a  number  of  engineers  and  machinists  had  departed  from 
the  United  States  for  Cuba  to  take  the  places  of  the  railroad  strikers. 
A  committee  representing  the  workmen  called  on  the  provisional  gov- 
ernor to  inquire  if  the  laws  permitted  the  landing  of  said  reported 
workmen.  The  immigration  law  of  Cuba  is  an  adaptation  of  the 
immigration  law  of  the  United  States.  In  both  countries  the  impor- 
tation of  contract  laborers  is  prohibited.  The  prohibition  is  not 
based  on  the  fact  that  the  incoming  workmen  are  foreigners,  or  that 
they  seek  to  enter  for  the  purpose  of  engaging  in  any  particular  em- 
ployment. The  law  of  Cuba  being  borrowed  from  the  United  Stat 
the  interpretations  of  that  law  by  the  courts  of  the  United  States 
are  authoritative  in  Cuba.  The  courts  of  the  United  States  establish 
that  in  order  to  exclude  a  workman  under  the  contract  labor  law 
it  is  necessary  to  establish:  (1)  That  the  immigrant,  before  attempt- 
ing to  land,  must  have  entered  into  a  contract  to  perform  labor  in 
the  United  States;  (2)  That  he  must  have  come  to  the  United  States 
in  actual  pursuance  of  said  contract;  and.  (3)  That  the  person  or 
company  with  whom  he  entered  into  such  contract  must  have  pre- 
paid his  transportation.  Unless  these  three  facts  are  established  the 
passenger  must  be  permitted  to  land. 

The  chief  of  the  immigration  service  was  advised  as  to  this  con- 
dition of  the  law  and  that  the  questions  involved  were  questions  of 
fact  to  be  established  by  evidence. 

The  partial  suspension  of  the  railway  service  had  occasioned  much 
inconvenience  to  a  large  portion  of  the  general  public,  and  consid- 


57 

erable  pressure  had  been  brought  to  bear  to  permit  the  landing  of 
the  alleged  "strike  breakers,"  but  the  attention  of  the  chief  of  the 
immigration  service  was  called  to  the  fact  that — 

The  laws  of  a  country  must  be  applied  impartially,  with  judicial  calmness, 
and  in  accordance  with  established  procedure,  without  regard  for  rank  or  sta- 
tion. All  just  governments  apply  the  law  with  equal  force  to  rich  and  poor, 
employer  and  employee,  and  those  of  high  or  low  degree.  This  rule  must  guide 
us  in  this  and  all  other  affairs,  and  I  doubt  not  will  commend  itself  to  all 
Cubans  and  others  interested  in  the  welfare  of  the  island." 

On  the  arrival  of  the  boat  in  which  the  alleged  strike  breakers  were 
shipped  the  chief  of  the  immigration  service  examined  the  passenger 
list  and  questioned  the  captain  and  purser  as  to  whether  or  not  there 
were  any  passengers  on  board  whose  passage  had  been  paid  by  per- 
sons other  than  themselves,  and  required  their  written  certificate  as 
to  the  facts;  he  also  examined  each  of  the  passengers  and  questioned 
them  as  to  whether  they  were  under  contract  to  work  upon  arrival 
in  Cuba,  or  whether  they  came  to  Cuba  in  pursuance  of  such  contract. 
and  whether  their  passage  had  been  paid  by  themselves  or  others. 
The  examination  developed  nothing  justifying  the  exclusion  of  any 
of  the  passengers,  and  they  were  allowed  to  land.  The  strikers  made 
no  resistance  and  committed  no  acts  of  violence,  but  proceeded  to 
collect  evidence,  and  when  shortly  thereafter  a  number  of  said  im- 
migrants who  were  supposed  to  be  strike  breakers  entered  the  employ 
of  the  railways,  the  strikers  brought  the  matter  to  the  attention  of 
the  courts  by  application  for  judicial  order  of  deportation.  The 
audiencia  of  Habana  appointed  a  special  judge  to  conduct  the  in 
filiation;  the  proceedings  therein  are  not  yet  concluded. 

LEGISLATIVE  CONDITION. 
JUDICIAL  BRANCH    OF  GOVERNMENT — THE  JX  DICIARY. 

The  courts  and  judges  of  the  island  have  a  standing  as  high  as  do 
the  courts  of  other  countries.  The  Cubans  are  deservedly  proud  of 
their  judiciary.  This  results  from  the  character  and  ability  of  the 
individuals  who  constitute  the  tribunals,  for  the  codes,  procedu 
and  body  of  laws  are  not  adapted  to  the  form  of  government  or  the 
conditions  of  society  and  business  now  existing.  The  courts  of  Cuba 
are  called  upon  to  deal  with  a  mass  of  laws  quite  the  most  complicated 
of  any  on  earth.  The  laws  of  Cuba  consist  of  a  number  <*>l'  laws  orig- 
inally enacted  for  the  Spanish  Peninsula  and  subsequently  extended 
to  Cuba,  thereafter  modified  or  interpreted  by  innumerable  royal 
decrees  and  added  to  by  orders  of  Spanish  military  and  civil  gov- 
ernors, issued  in  many  instances  with  reference  to  special  cases  or 
emergencies.  These  in  turn  were  supplemented  by  the  orders  of  the 
military  government  established  by  the  United  States,  complicated 


58 

by  ;i  constitution   for  a  republic  which  provided  thai   the  <>l<l  laws 
should  continue  in  force  until  new  one-  wen-  enacted  by  Congn 
Thereafter  the  Presideni   of  the   Republic  issued   numerous  decreee 
having  the  force  and  effed  of  legislative  enactments,  and  for  the  past 
year  the  provisional  governor  has  exercised  the  Legislative  authority 
in  numerous  instance 

The  judges  and  courts  of  countries  where  the  laws  are  well  adapted 
to  conditions,  every  principle  well  established  by  years  of  harmonious 
legislation,  every  question  of  practice  and  procedure  settled  by  in- 
numerable decisions  and  practically  all  questions  of  law  buttressed  by 
precedent,  would  view  with  consternation  a  confusion  such  as  the 
Cuban  courts  are  called  upon  to  harmonize  and  reduce  to  consistency. 
That  they  have  so  well  succeeded  in  this  as  to  merit  and  receive  the 
confidence  and  esteem  of  all  Cuba  is  not  only  worthy  of  mention  but 
establishes  conclusively  that  the  judicial  faculty  is  to  be  found  among 
the  Cubans  and  that  the  functions  of  the  judicial  branch  of  Govern- 
ment will  be  performed  by  Cubans  equally  as  well  as  are  performed 
the  functions  of  that  branch  in  other  countries,  and  that  the  defects 
in  the  judicial  system  are  to  be  attributed  to  the  legislative  and  not 
the  judicial  branch  of  Government. 

LEGISLATIVE    BRANCH    OF    GOVERN M  EXT — LEGISLATIVE    NEEDS. 

The  constitution  of  Cuba  was  promulgated  by  military  order  on 
April  14,  1902,  and  went  into  effect  on  May  20  following,  on  which 
date  a  government  under  its  provisions  was  inaugurated. 

The  Government  under  the  constitution  is,  in  theory,  one  of  three 
coordinate  and  independent  departments — the  legislative,  executive, 
and  judicial — and  in  this  separation  of  governmental  power  is  fun- 
damentally* opposed  to  the  preexisting  government  maintained  by 
Spain,  under  which  the  executive  branch  exercised  the  legislative 
power  and  was  given  an  effective  intervention  in  the  affairs  of  the 
judiciary.  The  constitution  established  another  important  innovation 
in  the  grant  it  made  of  local  self-government  to  the  provinces  and 
municipalities,  being  in  this  respeet  opposed  to  the  preexisting  Span- 
ish system  under  which  a  very  effective  supervision  and  control  over 
these  subordinate  governments  was  reserved  to  the  Chief  Executive. 

To  complete  the  transition  from  monarchical  to  republican  govern- 
ment, legislative  action  upon  a  broad  scale  was  urgently  necessary. 
The  most  immediate  necessity  was  new  legislation  to  perfect  the 
organization  of  the  government  under  the  constitution,  and  for  the 
enforcement  of  provisions  of  that  instrument  which  were  not  in  their 
nature  self-executory,  and  would  lie  dormant  for  the  lack  of  it. 
Next  in  order  of  importance  was  the  revision  of  the  existing  laws 
regulating  the  public  administration,  which  were  mainly  of  Spanish 
enactment,  and  reflected  the  highly  .centralized  executive  government 


59 

which  Spain  had  maintained  in  Cuba.  Tin1  amendment  of  these 
latter  laws  was  primarily  necessary  for  the  purpose  of  eliminating 
those  provisions  which  gave  executive  officials  an  undue  intervention 
in  the  affairs  of  the  judiciary  and  in  the  provincial  and  municipal 
administrations.  Of  less  urgency,  but  still  of  great  importance,  was 
the  revision  of  the  substantive  laws  in  force  al  the  time  of  the  adop- 
tion of  the  constitution,  the  greater  number  of  which  were  laws  of  the 
Peninsula  extended  to  Cuba  during  the  decade  following  the  close 
of  the  ten-year  war.  Many  of  the  special  laws  of  Spanish  origin  in 
force  in  Cuba  had  been  enacted  early  in  the  preceding  century,  and 
the  code  law  generally  between  1870  and  1890.  All  this  legislation 
required  extensive  revision  directed  toward  the  elimination  of  provi- 
sions dependent  upon  Spanish  sovereignty  and  the  union  of  church 
and  state,  and  its  adaptation- to  the  new  conditions  brought  about  \>\ 
the  introduction  of  Kepubliean  government 

The  First  Congress  elected  under  the  constitution  of  Cuba  held  a 
brief  session  early  in  the  month  of  May.  L902,  under  the  sanction  of 
a  military  order,  for  the  purpose  of  canvassing  the  electoral  vote 
for  President  and  Vice-President.  It  reassembled  on  the  20th  of 
that  month,  contemporaneously  with  the  inauguration  of  the  new 
Government.  Its  life  covered  the  period  following  until  April  I, 
1904.  when  the  first  biennial  renovation  of  the  lower  house  became 
effective,  and  the  Second  Congress  was  organized.  During  the  period 
of  the  First  Congress  the  four  regular  sessions  required  by  the  con- 
stitution (article  -~>7)  were  held.  The  firs!  session  covered  the  period 
from  May  20  to  October  20,  L902;  the  second  from  November  •_'.  L902, 
to  March  17,  1903;  the  third  from  April  :'>  to  July  L8,  L903,  and  the 
fourth  from  November  2,  1903,  to  January  L9,  190-1.  The  period 
during  which  the  First  Congress  was  ostensibly  in  session  aggregated 
461  days,  during  which  the  lower  house  held  198  daily  sessions,  and 
the  senate  213  sessions.  The  response  which  this  Congress  made  to 
the  urgent  demands  for  Legislation  under  the  constitution  ma] 
stated  as  follows: 

1.  Municipal  legislation. — On  July  5,  L902,  Congress  enacted  a 
law  relating  to  the  municipal  administration,  the  sole  effed  of  which 
was  to  confirm  and  continue  in  office  municipal  alcalde-,  council- 
men,  and  treasurers  who  were  in  office  on  dune  :'.()  prior  thereto,  ami 
until  such  time  as  laws  regulating  municipal  administration  and 
government   could   be  enacted.      It    was  not.  however,  until   the  third 

session  of  the  Firs!  Congress  that  a  project  of  municipal  law  was 
introduced  in  either  branch  of  Congress.  This  project  was  finally 
passed  by  the  lower  house  and  was  transmitted  to  the  senate,  which 

appears  not  to  have  acted  thereon.  No  other  attempts  appear  to 
have  been  made  to  enact  municipal  legislation. 

2.  Provincial  legislation. — During  the  second  session  of  the  First 
Congress  there  was  enacted  and  promulgated  the  provincial  govern 


60 

ii i«-i 1 1  aci  of  March  L0,  L903,  the  defects  of  which  were  speedily  re- 
vealed. It  is  now  undergoing  revision  al  the  hands  of  the  advisory 
commission. 

3.  National  legislation. — During  the  first  legislative  term  of  the 
First  Congress  a  project  of  a  "Law  of  executive  departments"  was 
considered  and  passed  by  the  Benate  (September  2,  L902)  and  was 
subsequently  passed  by  the  house  in  an  amended  form.  The  bill  then 
went  to  conference,  where  it  was  further  amended.  The  conference 
report  thereon  was  subsequently  rejected  in  the  lower  house,  where- 
upon all  efforts  upon  the  part  of  either  house  to  pass  this  particular 
law  appear  to  have  ceased.  During  the  third  legislative  term  of  the 
First  Congress  the  senate  again  took  up  the  consideration  of  a  law 
organizing  the  central  departments  of  Government,  which  it  passed 
and  sent  to  the  lower  house,  which  failed  to  take  action.  This  appears 
to  have  been  the  final  attempt  made  by  the  First  Congress  to  supply 
legislation  of  this  character. 

In  other  respects  the  attempt  of  the  First  Congress  to  supply  legis- 
lation of  a  national  character  was  more  successful,  it  having  passed, 
in  addition  to  the  provincial  government  act  of  March  10,  noted  above, 
laws  providing  for  the  biennial  renewal  of  the  lower  house  and  for  the 
reorganization  of  the  Rural  Guard,  a  law  of  Cuban  citizenship,  an 
organic  law  of  the  diplomatic  and  consular  corps,  a  national  loan 
law,  a  law  of  constitutionality,  a  law  of  Presidential  succession,  an 
electoral  law,  and,  in  addition,  laws  amending  the  notarial  and  cus- 
toms tariff  act  in  minor  regards.  Regulations  governing  the  two 
houses  in  the  enactment  of  legislation  were  also  adopted. 

On  February  28,  1904,  the  elections  were  held  for  the  first  biennial 
renewal  of  representatives.  Those  elected,  with  the  hold-over  repre- 
sentatives, constituted  the  Second  Congress,  which,  under  article  57 
of  the  constitution,  was  required  to  convene  on  the  first  Monday  of 
the  following  April.  The  National,  now  the  Liberal  party,  which 
was  in  the  minority  in  both  branches  of  Congress,  contested  the  cre- 
dentials issued  to  certain  candidates  as  the  result  of  the  election  of 
February  27.  Availing  itself  of  the  provisions  of  the  constitution 
(article  54),  which  required  the  presence  of  two-thirds  of  the  total 
membership  of  each  branch  to  open  sessions,  and  of  the  omission  of 
the  constitution  to  provide  means  for  compelling  the  attendance  of 
members,  the  minority  party  was  able  to  prevent  a  meeting  of  the 
lower  house  on  a  day  fixed  by  the  constitution,  April  4.  No  session 
of  that  body  was  held  until  June  13,  when  a  quorum  of  one-half  plus 
one  met  and  undertook  to  transact  business.  The  next  daily  session 
of  the  lower  house  was  held  on  July  6,  following.  The  first  legisla- 
tive term  of  this  Congress  lasted  until  October  20,  a  period  of  199 
days,  during  which  the  lower  house  was,  due  to  the  obstructive  tactics 
of  the  minority,  able  to  hold  but  16  daily  sessions.    The  senate  met 


61 

on  April  4,  as  required  by  the  constitution,  and  began  to  function  in 
an  irregular  manner.  Eight  daily  sessions  were  held  during  the 
month  of  April,  3  in  the  month  of  May,  and  1  in  the  month  of  June, 
and  none  throughout  the  month  of  July.  During  the  first  legis- 
lative term  the  senate  held  but  26  sessions. 

This  record  of  both  houses  of  Congress  for  infrequent  and  irregular 
sessions  continued  during  the  three  remaining  legislative  term-  of  the 
Second  Congress.  The  four  legislative  terms  of  this  Congress  aggre- 
gated 0*82  days,  and  during  this  period  the  lower  house  was  in  session 
but  118  days,  and  the  senate  but  87  days. 

On  December  1,  1905,  there  was  held  an  election  for  the  second 
biennial  renewal  of  the  lower  house.  Due  to  the  political  majorities 
returned  in  that  election,  the  minorities  in  both  houses  ceased  to  be 
formidable,  and  the  obstructive  tactics  they  had  employed  during  the 
period  of  the  Second  Congress  could  no  longer  be  successfully  utilized. 
The  Third  Congress  met  on  the  2d  of  April,  190G,  and  did  not  adjourn 
until  the  30th  of  June — 89  days — during  which  period  both  houses 
pursued  their  normal  routine  as  to  daily  sessions. 

During  the  period  of  the  Second  Congress  little  or  no  general  leg- 
islation was  attempted,  and  even  the  annual  budgets  failed  of  enact- 
ment. A  few  special  laws  were  passed,  generally  carrying  small 
appropriations,  and  one  act  amending  the  tariff  law  in  a  minor  regard 
was  enacted.  The  election  disturbances  of  1905  were  undoubtedly  the 
principal  cause  of  the  inactivity  of  both  houses  during  the  final  legis- 
lative term  of  this  Congress.  From  November  15, 1905,  to  January  9, 
190G,  the  senate  did  not  hold  a  single  session.  During  the  remainder 
of  the  month  of  January  but  7  sessions  were  held,  and  in  February 
but  3.  On  the  day  after  the  final  adjournment  of  Congress,  Febru- 
ary 24.  the  attack  on  the  headquarters  of  the  Rural  Guard  at  Guana- 
bacoa  took  place,  and  this  was  followed  by  other  disturbances  which 
finally  culminated  in  the  uprising  in  August.  It  was  doubtless  bo- 
cause  of  this  public  agitation,  which  covered  the  whole  period  here 
in  reference,  that  the  Third  Congress,  which  assembled  on  April  •_', 
190G,  likewise  failed  to  enact  any  important  general  legislation. 

A  review  of  the  record  of  all  three  Congresses  shows  251)  ads  of  all 
kinds  enacted,  the  general  character  of  which  is  exhibited  in  tin-  fol- 
lowing table: 

Amnesties    

Appropriations '-•" 

Creating  offices  and  fixing  salaries 30 

Exemption  from  customs  duties -•"• 

Miscellaneous  provisions ,v" 

Substantive   laws    •'•• 

Repealing  acts 1° 

Transitory  regulations '- 

Total 


62 

In  the  L26  appropriation  acts  pas  ed  there  are  included  bul  two 
annual  budgets.  Twenty-two  were  donations  of  public  funds  t<> 
private  individuals.  Hie  most  creditable  showing  under  this  head 
is  to  be  found  in  the  44  acts  carrying  appropriations  for  public  work-. 
aggregating  nearly  $12,00Q,00O. 

The  only  act  of  any  importance  classed  under  the  head  of  -  Miscel- 
laneous" is  the  one  recognizing  the  validity  of  certain  debt-  incurred 
by  the  revolutionary  government  prior  to  1809.  The  general  nature 
of  the  others  may  be  inferred  from  one  or  two  examples;  the  act  of 
August  29,  1905,  validating  academic  titles  conferred  by  Spanish  uni- 
versities, and  the  act  of  June  30  prescribing  the  formalities  to  be 
observed  at  the  funeral  of  a  general  officer.  But  two  of  the  repealing 
acts  affected,  even  in  a  slight  degree,  the  old  Spanish  law  or  method 
of  administration,  and  these  operated  mainly  to  bring  about  donations 
from  the  State  to  individuals  by  waiver  of  obligations  due. 

Of  the  acts  listed  above  as  "  Substantive  legislation,"  the  more  im- 
portant are  the  electoral  law,  the  law  relating  to  armed  forces,  the 
provincial  law,  all  of  which  are  now  undergoing  revision  by  the  pro- 
visional government,  and  the  law  of  the  division  of  communal 
estates,  which  has  already  been  revised.  In  three  of  the  five  years 
between  1902  and  1906,  the  national  budget  failed  of  passage. 

The  failure  of  the  Cuban  Congress  to  make  any  adequate  response 
to  the  urgent  demands  for  legislation  under  the  constitution,  and  by 
way  of  revision  of  the  existing  laws,  is  to  be  attributed  in  consider- 
able degree  to  the  political  dissensions  and  disturbances  noted  above. 
There  is  to  be  considered  also,  as  operating  to  the  same  end,  the  lack 
of  experience  of  the  Cuban  people  in  legislative  work.  During  the 
four  centuries  of  government  which  preceded  the  establishment  of 
the  Republic  the  laws  of  Cuba  were  promulgated  from  Madrid,  and 
the  participation  of  the  Cuban  people  in  their  government  was  limited 
mainly  to  the  administrative  side.  This  lack  of  experience  in  legisla- 
tive work  has  operated  to  a  greater  extent,  I  apprehend,  than  the 
political  dissensions  and  disturbances  above  noted  in  defeating  the 
legislation  which  was  required  for  the  organization  and  administra- 
tion of  the  new  government.  That  this  failure  of  the  Cuban  Congress 
to  legislate  under  the  constitution  was  a  potent  cause  in  bringing 
about  the  conditions  which  made  the  insurrection  of  1906  possible  is 
sufficiently  evidenced  by  the  fact  that  nearly  all  the  bases  of  settle- 
ment between  the  warring  factions  proposed  during  the  period  of 
deliberations  which  led  up  to  the  establishment  of  the  provisional 
government  incorporated  more  or  less  urgent  demands  for  legislation 
of  this  character,  and  particularly  for  legislation  under  the  constitu- 
tion affecting  municipal  and  judicial  administration. 

To  meet  this  demand  for  legislative  action,  and  in  pursuance  of  the 
plan  of  the  peace,  on  December  2-4,  1906,  decree  No.  284,  creating  the 


63 

advisory  commission,  to  which  I  have  above  referred,  and  charging 
them  with  the  duty  of  preparing  projects  of  (1)  an  electoral  law; 
(2)  provincial  and  municipal  laws;  (3)  an  organic  judiciary  law. 
and  (4)  a  civil-service  law.  This  legislative  programme  has  since 
been  extended  by  me  to  include  a  law  of  executive  departments  for 
the  organization  of  the  national  administration,  an  organic  law  of 
the  armed  forces,  and  a  revision  of  certain  designated  portion-  of  the 
mortgage  and  notarial  law-.  As  already  stated,  the  Commission  will 
shortly  have  ready  for  promulgation  an  electoral  law.  a  judiciary 
law,  and  a  municipal  law,  including  the  law  of  municipal  taxation 
and  accounting:  and  considerable  progress  has  I >«-«-i i  made  in  the  draft 
of  a  civil-service  lav*  and  law  of  executive  departments.  At  the  sug- 
gestion of  the  advisory  commission,  which,  I  think,  represents  a 
public  demand.  I  shall  soon  convene  a  special  commission  for  the 
revision  of  the  penal  code  and  the  code  of  criminal  procedure. 

The  foregoing  measures  when  enacted  into  laws  will  constitute  a 
substantial  and  important  advance  in  supplying  the  legislative  needs 
of  the  Republic,  but  they  must  be  supplemented  by  numerous  other 
laws  of  equal,  if  not  greater,  importance  before  the  existing  emer- 
gency is  met  or  the  necessities  of  the  Republic  met.  There  is  nothing 
more  indispensable  to  the  establishment,  stability,  and  maintenance 
of  the  Republic  of  Cuba  than  to  do  away  with  or  reform  the  body 
of  monarchical  laws  inherited  from  Spanish  dominion  and  by  refor- 
mation or  new  enactment  provide  a  system  of  law-  which  will  render 
tie'  constitution  effective  and  are  adapted  to  a  Republican  form  of 
Government  and  the  conditions  of  modern  thought  and  bush 
political,  and  social  relations  prevailing  in  Cuba. 

The  character  and  extent  of  this  work  i-  well  stated  by  Col.  E.  II. 
Crowder,  U.  S.  Army,  adviser  to  the  department  of  state  and  just 
in  his  letter  transmitting  the  report  of  the  department  of  state  and 
justice,  to  which  letter  attention  is  directed. 

Since  the  inauguration  of  the  Provisional  Government  the  i 
sity  for  numerous  provisions  of  special  application  to  administrative 
organization  and' details  of  government,  as  well  a-  matters  of  finance, 
public  order,  and  protection  of  property  right-,  sanitation,  and  police 
powers  in  general,  ha-  resulted  in  the  issue  of  a  number  of  executive 
and  legislative  decrees  by  the  provisional  governor.  Those  of  a  1.  : 
lative  character  modifying  or  superseding  prior  existing  laws  may 
be  briefly  epitomized  as  follows: 

1.  Disbursement  and  audit. — Decree  No.  s.  October  8,  L906,  pro- 
vided additional  law-  and  regulations  governing  disbursement  and 
auditing  of  funds  and  payment  of  expenses  of  the  provisional  gov- 
ernment on  authority  of  orders  of  the  provisional  governor. 

2.  Prosecution  of  sob  lb  rs,  sailors,  and  mariru  8  s<  rving  in  I 
violation  of  Cuban   burs. — The  exceptional  and   novel  conditions  of 


64 

the  service  of  the  1  State    Army  and  Marine  Corps  in  Cuba 

suggested  die  inadvisability  of  subjecting  the  members  thereof  i«>  the 
crimina]  jurisdiction  <>f  the  ordinary  courts.  Accordingly,  decree  Nfo. 
16,  of  October  11,  1906,  \\;i-  issued  recognizing  the  jurisdiction  of 
courts-martial  for  the  trial  of  [Jnited  States  soldiers,  sailors,  and 
marines  for  offenses  against  Cuban  laws  when  such  offen  • 
committed  under  circumstances  prejudicial  to  the  good  order  and  dis- 
cipline of  these  services,  but  providing  that  as  to  offenses  against 
said  laws  committed  by  them  under  other  circumstances  jurisdiction 
should  vest  in  provisional  courts  to  be  convened  from  time  to  time 
by  the  provisional  governor  and  to  be  composed  of  commissioned  offi- 
cers of  the  several  branches  of  the  services  named.  These  provisional 
courts  in  imposing  sentences  are  governed  by  the  penal  code  of  Cuba. 
The  ordinary  courts  of  Cuba  are  divested  of  jurisdiction  in  the  ex- 
cepted cases,  but  the  decree  does  not  carry  immunity  from  arrest  by 
Cuban  officials  for  crime  and  breaches  of  peace  committed  in  their 
presence,  or  where  a  party  is  escaping  from  the  scene  of  his  illegal 
act. 

Supplementary  to  this  decree  another,  174  of  July  12,  1907,  was  is- 
sued imposing  penalties  against  those  persons  not  members  of  the 
services  named  who  failed  or  refused  to  eomply  with  subpoenas  of 
general  court-martial  to  appear  and  testify  as  witnesses,  said  penalties 
to  be  enforced  by  the  local  courts. 

3.  Claims. — Decree  No.  158,  November  22,  1906,  created  a  commis- 
sion and  prescribed  methods  of  procedure  for  the  investigation  and 
adjustment  of  claims  against  the  government  arising  out  of  the  re- 
cent insurrection.  The  effective  and  systematic  work  of  this  Com- 
mission, elsewhere  noted  in  this  report,  promises  the  early  settlement 
of  all  these  claims. 

4.  Amendment  of  laic  of  charities. — By  decree  No.  452,  April  23. 
1907,  a  modification  of  law  respecting  rights  of  guardians  and  family 
councils  over  minor  children  is  made,  so  far  as  these  rights  were  ap- 
plicable to  destitute  orphans  under  the  care  of  the  state. 

These  rights  are  transferred  to  the  secretary  of  the  board  of  chari- 
ties, and  the  reasons  for  such  transfer  seem  obvious  when  considered 
in  connection  with  the  obligations  of  the  state  to  these  orphans. 

5.  Expropi*iation. — Decree  No.  595,  May  22.  1907,  extends  the  rights 
of  expropriation  or  condemnation  of  property  as  granted  by  order 
No.  92  to  railroads  in  case  of  public  works  of  the  state,  and  prescribes 
the  processes  of  condemnation  proceedings  by  the  state  when  requir- 
ing either  private  property  or  property  of  provinces  and  municipal- 
ities not  dedicated  to  a  public  use  for  public  purposes.  It  was  made 
advisable  by  the  many  improvements  and  constructions  of  public 
works  in  progress  and  in  contemplation. 


65 

6.  Demarcation  of  estates  in  common. — There  are  in  the  eastern 
provinces  of  Cuba  many  Large  unsurveyed  estates  held  in  common, 
the  division  of  which  has  for  a  century  been  regarded  as  necessary 
for  the  public  interests.  From  L819  to  L902  tin-  provisions  <>l 
"  Voto  consult ivo,"  a.resolution  of  the  audiencia  of  Puerto  Principe, 
were  applicable  to  their  demarcation.  After  January  1.  L886,  when 
the  code  of  civil  procedure  went  into  effect,  it  was  found  that  article 
2069  of  that  code  was  a  menace  to  the  final  effectiveness  of  any  such 
proceedings,  and  for  this  a-  well  a--  other  reasons  tin-  settlement  of 

land  titles  came  to  a  partial  standstill  near  the  close  of  the  nineteenth 
century.  In  order  to  provide  a  clear  and  simple  method  for  that  class 
of  proceedings,  order  No.  62  of  1902  was  promulgated.  Art  "n  lo  80  of 
the  oriler  repealed  all  other  laws  relative  to  the  demarcation  and  divi- 
sion of  rural  estates,  except  such  provisions  of  the  rode  of  civil 
procedure  as  were  no!    specifically  amended. 

There  can  he  no  douht  hut  that  the  intention  in  promulgating  that 
order  was  to  provide  a  means  for  surveying  and  partitioning  all 
classes  of  rural  estates.  The  preamble  to  the  order  in  question  indi- 
cate- such  intention,  and  the  interpretation  and  application  of  the 
order  by  courts  and  litigants  from  L902  to  1900  point  in  the  same 
direction.  The  wording  of  several  articles,  however,  led  the  supreme 
court  to  hand  down  a  decision  limiting  the  estates  which  may  he  sur- 
veyed and  divided,  according  to  order  No.  <'>•_>.  to  those  which  are  cir- 
cular in  form  and  at  the  same  time  originated  either  mediately  or 
immediately  in  royal  grants. 

It  was  made  to  appear  from  the  suggestions  of  interested  parties 
that  there  were  many  estates  in  Cuba,  still  unsurveyed  and  undivided. 
in  which  these  two  requisites  were  not  found.  It  further  appeared 
that  proceedings  had  been  instituted  under  order  No.  62  for  the  sur- 
vey and  partition  of  estates  not  circular  in  form  and  not  derived 
from  grants;  (hat  this  was  done  as  a  result  of  a  liberal  construction  of 
the  order,  and  possibly  by  reason  of  the  tacit  consent  of  interested  par- 
tie-:  that  thousands  of  dollar-  hail  been  expended  in  this  class  of  liti- 
gation, and  that  the  construction  placed  upon  the  older  might  result  in 
a  loss  of  all  the  time  and  money  thus  expended  and  remand  the  par- 
tie-  to  the  condition  in  which  they  found  themselves  in  1902,  in  that 
pending  proceedings  in  which  these  defect-  were  present  might  he 
annulled  upon  motion  to  that  effect,  ami  that  even  completed  demar 
cations  and  partitions  might  he  subject  to  attack.  There  arose  a 
demand  for  an  amendment  to  said  order  62  which  would  make  the 
order  applicable  to  all  rural  estates  and  prevent,  a-  far  a-  possible, 
the  undoing  of  nearly  all  that  has  been  accomplished  during  the 
period  the  order  had  operated. 

23706—08 .r, 


66 

A.ccordingly  decree  566,  of  May  IT.  L907,  was  issued,  extending  the 
provisions  of  3aid  order  62  t<>  the  partition  of  Lands  belonging  to 
tenants  in  common,  w  hatever  might  '><■  the  conditions  of  such  tenancy 

in  «■ mon,  ;m<l  whether  or  not   the  titles  to  s;i i< I  lands  proceeded 

from  grants  to  the  original  owners,  and  providing  Further  thai  no 
proceedings  theretofore  had  in  any  case  to  which  said  order  nij  had 
been  applied  should  be  attacked,  annulled,  or  declared  invalid  for 
failure  to  present  a  grant  of  the  property,  in  question.  The  effects  of 
the  order  have  proved  most  beneficial.  The  time  limits  in  which 
actions  for  partitions  of  the  character  here  in  reference  may  be 
brought  and  in  which  such  actions  may  be  completed  have  been 
extended  in  the  decree  No.  1080,  of  November  9,  1907. 

7.  Sanitation.— Otis  of  the  most  important  questions  presented  t<> 
the  provisional  government  was  that  of  sanitation.  The  prevailing 
sanitary  administration  was  one  involving  a  division  of  control  be- 
tween the  nation  and  the  municipalities  as  to  methods,  disbursements, 
and  personnel.  The  national  obligation  of  Cuba  assumed  by  Article 
V  of  the  appendix  to  the  constitution  was  such  n>  to  negative  a  di- 
vided administration  and  consequently  a  divided  responsibility.  \\i 
recognition  of  this,  decree  No.  894,  August  26,  1907.  was  promul- 
gated, transferring  the  administration  of  sanitation  of  all  munici- 
palities to  national  control.  The  cause  and  extent  of  this  change  and 
the  work  and  accomplishments  of  this  department  are  more  fully 
treated  of  in  other  parts  of  this  report.  By  decree  No.  1127,  of 
November  22.  1907.  tke  marine  quarantine  service  was  transferred 
from  the  treasury  department  to  the  department   of  sanitation. 

In  addition  to  decrees  of  the  above  character,  i.  e..  those  modifying 
or  superseding  prior  existing  laws,  various  decrees  of  amendatory 
character  were  issued.    Among  these  may  be  mentioned: 

Decree  No.  58,  series  of  190G,  temporarily  amending  the  railway 
law  in  personnel  of  the  railway  commission,  and  providing  for  final 
approval  of  its  acts  by  the  provisional  governor. 

Decree  No.  G6,  series  of  1907.  amending  the  customs  regulation-  by 
authorizing  the  secretary  of  the  treasury  to  abate  or  refund  duties 
on  goods  damaged  or  destroyed   in   the  customs  warehouses. 

Decree  No.  773,  series  of  1907.  amending  the  consular  tariff  law  by 
simplifying  the  manner  of  drafting  manifests. 

Decrees  No.  901  and  No.  1078,  series  of  1907,  amending  the  cus- 
toms regulations  in  the  provisions  for  the  entry  and  clearance  of 
vessels. 

Decree  No.  740,  series  of  1907.  permitting  the  slaughter  of  female 
cat  tie.  and  providing  that  female  cattle  imported  pay  the  same  duties 
as  male  cattle. 

Decree  No.  852,  series  of  1907,  providing  regulations  for  exempting 
from  duty  the  personal  effects  of  foreign  diplomats. 


67 

Decrees  No.  822.  No.  889,  and  No.  1101.  series  of  L907,  settling  diffi- 
culties Avhich  had  arisen  in  the  interpretation  of  the  customs  tariff  by 
fixing  the  duties  on  tar  paper,  cordage,  braids  for  harness,  ami  curd- 
board. 

Decree  No.  401,  series  of  1007.  simplifying  the  manner  of  m airing 
affidavit  in  petitions  to  take  advantage  <>i'  the  law  remitl  ing  duties  <>n 
encumbrances  in   favor  of  the  state. 

Decree  No.  618,  of  1907,  approving  and  rat  i  fying  t  he  convenl  ion  of 
the  Universal  Postal  Union  signed  at   Koine  May  i;t'».  l!>06. 

Decree  No.  634,  of  1907,  providing  the  manner  <>!'  registration  of 
deaths  and  marriages  during  the  Cuban  revolution. 

Decree  No.  900,  of  1907,  relative  to  the  issuing  of  certified  copies 
of  documents  in  the  national  archives. 

Decree  No.  908,  of  1907.  regulating  the  leaves  of  absence  of  reg- 
istrars of  property. 

Decree  No.  1036,  of  1907,  amending  the  civil  registry  law  as  to 
death  certificates  and  burial  permits. 

Decree  No.  1051,  of  1907,  relating  to  procedure  for  staying  execu- 
tion of  judgments. 

Decree  No.  882,  of  1907,  permitting  farriers  to  practice  veterinary 
medicine  in  places  where  there  are  no  veterinarians. 

Decree  No.  182,  of  1907,  extending  terms  of  present  school  boards. 

Decree  No.  737,  of  1907,  amending  the  curriculum  of  the  School 
of  Sciences. 

Decree  No.  854,  of  1907,  regulating  the  summer  normal  school-. 

MISCELLANEOUS. 
PURCHASE  OF   CHURCH   PROPERTY. 

Shortly  after  I  assumed  the  office  of  provisional  governor  the 
matter  of  the  purchase  of  certain  church  property  upon  which  an 
option  was  held  by  the  State  was  brought  to  my  attention,  and  in 
compliance  with  a  letter  of  the  Secretary  of  War  I  made  an  investi- 
gation of  the  options. 

In  the  year  1842  the  Spanish  Government  had  confiscated  a  large 
amount  of  property  belonging  to  the  Catholic  Church;  and  though 
a  part  thereof  was  afterwards  returned,  a  considerable  portion  was 
retained  by  the  State  and  used  for  secular  purposes.  In  L899,  when 
the  State  appropriations  for  the  clergy  ceased,  the  church  laid  claim 
to  the  property  so  retained,  and  commissions  appointed  by  the  mili- 
tary governor  reported  that  the  church  was  rightfully  entitled 
thereto.  The  military  governor  thereupon  made  contracts  by  which 
a  part  of  the  property  Avas  purchased  outright  and  option-  secured 
upon  the  remainder,  with  the  obligation   to   pay   an   annual   rental. 


68 

The  property  upon  which  the  options  were  90  obtained  was  situated 
in  the  provinces  of  I  [abana  and  ( >riente.  The  I  Cabana  property  con- 
sisted of  the  former  Convent  of  San  Francisco,  occupied  by  the  lla- 

bana   custom-] se;  the   former   University  and  Convent   of  Santo 

Domingo,  occupied  by  the  Habana  High  School:  the  edifice  occu- 
pied by  the  A.cademy  of  Sciences,  which  was  entirely  rebuilt  during 
the  military  government,  and  two  smaller  buildings.  Etc  retention 
was  urgently  demanded  by  the  public  interests.  The  Santiago  prop- 
erty consisted  of  a  number  of  annuities  and  rural  estates. 

The  option  for  the  Habana  property  was  entered  into  October  23, 
1901,  and  was  for  five  vein-,  while  the  one  for  the  Santiago  property 
was  entered  into  January  11;  L902,  and  was  lor  the  same  period. 
These  options  were  afterwards  extended  to  June  30,  L907.  The 
valuation  of  this  property  had  been  fixed  in  the  contract,  as  well  as 
the  rental  to  he  paid  during  the  t  inie  the  option  was  to  run. 

The  purchase  of  this  property  by  the  Cuban  GovernmCnl  had  Keen 
called  to  the  attention  of  the  Cuban  Congress  by  President   Estrada 
Palma  in  his  animal  message  of  1904,  as  well  as  in  another  mess 
in  April.  100.~>,  and  a  special  message  in  November  of  the  same  year, 
but  the  Congress  failed  to  act. 

During  the  consideration  of  this  matter  and  because  of  several 
articles  appearing  in  the  daily  press  complaining  that  the  contract 
price  iixed  for  this  property  was  greatly  in  excess  of  its  value,  steps 
were  taken  to  have  the  property  appraised  by  men  having  a  knowl- 
edge of  the  value  of  real  estate.  The  general  average  of  all  the  esti- 
mates submitted  by  the  different  parties  fixed  1  he  valuation  greater 
than  that  agreed  upon  between. the  church  authorities  and  General 
Wood. 

An  inquiry  was  made  of  the  church  authorities  as  10  whether  an 
extension  of  the  option  and  lease  on  the  Habana  property  could  be 
obtained  in  the  event  that  the  Government  of  Cuba  should  fail  to 
purchase  the  same  before  the  termination  of  the  option,  but  on 
account  of  other  bids  having  been  made  the  church  authorities  replied 
that  it  would  not  be  practicable  to  extend  the  option  further.  The 
investigation  included  only  the  property  in  the  diocese  of  Habana 
and  did  not  cover  the  property  in  the  archbishopric  of  Santiago.  It 
was  therefore  agreed  by  the  representatives  of  the  Catholic  Church 
that  the  option  upon  the  Santiago  property  would  be  extended  one 
year,  but  the  contract  with  regard  to  the  property  in  the  diocese  of 
Habana  was  carried  out  by  the  execution  and  delivery  of  a  deed  of 
transfer  and  the  payment  of  money  on  July  12,  L907.  Public  senti- 
ment approved  of  this  action  and  all  seemed  pleased  to  know  that 
this  long  drawn-out  complication  was  finally  terminated. 

An  examination  of  the  property  in  the  diocese  of  Santiago  will  be 
made  before  the  termination  of  the  option,  but  this  investigation  as 


69 

to  the  extent,  character,  and  value  of  the  property  will  involve  much 
difficulty,  due  to  the  fact  that  a  Large  numb  r  of  small  annuities  and 
parcels  of  ground  are  involved,  thai  many  records  of  this  property 
were  destroyed  during  the  ten  years'  war.  and  other  records  and  doc- 
uments disappeared  at  the  close  of  the  Spanish-American  war  and 
have  not  yet  been  Located.  It  Ls  also  exceedingly  difficult  to  ascertain 
facts  respecting  the  property  owned  by  the  church  because  the  arch- 
bishop of  Santiago  is  now  a  verv  old  man.  feeble,  almost  blind,  and  is 
unable  to  offer  any  assistance  in  the  matter,  while  manj  of  the  priests 
who  possessed  personal  knowledge  of  this  property  are  either  dead 
or  have  been  transferred  from  Cuba.  An  effort,  however,  will  be 
made  to  secure  as  complete  knowledge  of  this  property  as  is  possi- 
ble under  these  circumstances,  and  it  is  hoped  that  an  agreement  may 
be  reached  by  which  this  much-discussed  problem  of  church  property 
in  Cuba  may  be  brought   to  a  satisfactory  conclusion. 

APPOINTMENT    OF    CLAIMS    COMMISSION     FOR    ADJUSTMENl     OF    DAMAGES 
CAUSED  uv  REVOLT  Tlo.\  OF   L906. 

With  the  object  of  investigating  and  reporting  on  the  numerous 
claims  filed  against  the  Government  for  damages  caused  by  the  in- 
surgents in  the  uprising  of  last  year,  a  claims  commission  was  organ- 
ized by  decree  No.  180,  of  November  27,  L906.  The  commission,  as  at 
first  constituted,  was  composed  of  Maj.  Francis  J.  Kernan,  General 
Staff  Corps.,  U.  S.  Army,  president;  Mr.  Manuel  Landa,  judge  of 
the  audiencia  of  Habana,  and  Capt.  George  W.  Read,  General  Staff 
Corps,  U.  S.  Army,  recorder.  With  the  retirement  of  Major  Kernan 
and  the  transfer  of  Judge  Landa  to  be  acting  head  of  the  department 
of  justice,  the  commission  was  reorganized  by  decree  No.  811,  of  July 
24,  L907,  Captain  Read  was  appointed  president,  and  Mr.  Antonio 
del  Valle  y  Duquesne,  deputy  fiscal  of  the  audiencia  of  Habana,  and 
Second  Lieut.  Aristides  Moreno.  Twenty-eighth  Infantry.  I  .  S. 
Army,  were  appointed  members.  On  August  II.  L907,  bj  decree  No. 
sue,  a  number  of  assistants  were  appointed  to  make  local  investiga- 
tions, as  follows : 

Capt.  .tames  w.  Furlow,  Fourth  U.  S.  [nfantry. 

first  Lieut.  J.  K.  Partello,  Fifth  U.  S.  Infantry. 

First  Lieut.  V.  La  s.  Rockwell,  Eleventh  U.  S.  Cavalry. 

Second  Lieut.  C.  S.  Donavln,  Twenty-seventh  !'.  S.  [nfantry. 

Second  Lieut.  John  E.  Semmes,  jr.,  !'.  s.  Marine  Corps. 

Second  Lieut.  Charles  F.  B.  Price,  I  .  S.  Marine  Corps. 

Capt.  Roman  .Mania.  Rural  Guard  of  Cuba. 

Capt.  Miguel  Marona,  Artillery  <'c»ri>s  « » r  Cuba. 

Capt.  rgnacio  Delgado,  Rural  Guard  of  Cuba. 

First  Lieut.  Francisco  Fernandez,  Rural  Guard  of  Cuba. 

Second  Lieut.  Eugenio  Dubois,  Rural  Guard  of  Cuba. 

Second  Lieut.  A.ugustin  Rodriguez,  Rural  Guard  of  Cuba. 


70 


The  commission  was  confronted  with  an  enormous  amount  of 
work,  which  it  is  doing  thoroughly  and  well.  It  firs!  turned  its  at- 
tention to  the  claims  for  horses  and  mules  carried  off  by  1  li<-  insur- 
gents. Of  these  claims  there  were  6,557  and  the  amount  claimed 
was  $653,027.20.  The  amount  recommended  by  the  commission  was 
$296,508.84.  The  number  of  claims  for  miscellaneous  Losses  and 
damages  was  8,194,  of  which  5,500  have  been  investigated.  In  these 
the  total  amount  claimed  was  $1,035,079.56  and  the  amount  allowed 
by  the  commission  $441,920.55.  Of  these  5,500  claims  many  were 
made  by  aliens,  the  following  nationalities  being  represented:  United 
States,  Mexico,  Spain.  Germany,  Great  Britain,  Italy.  Arabia,  Tur- 
key, France,  China,  and  Colombia.  The  amount  claimed  by  them  was 
$436,413.98  and  the  amount  approved  by  the  commission  $179,330.55. 

It  will  be  seen  that  the  commission  has  made  rapid  progress.  The 
total  number  of  claims  filed  has  been  14,751,  of  which  12,057  have 
been  investigated  and  reported,  leaving  2,694  pending.  The  total 
amount  claimed  in  the  12,057  cases  reported  was  $1,688,106.76,  the 
total  amount  allowed  by  the  commission  in  these  cases  being  $738,- 
429.39.  The  total  amount  claimed  in  the  2,694  cases  pending  is  ap- 
proximately $2,250,000.  The  greater  part  of  these  claims  have  been 
locally  investigated  and  depositions  of  witnesses  taken.  It  is  im- 
possible to  say  how  much  will  be  required  to  settle  the  pending 
claims,  but  it  is  estimated  that  the  amount  will  be  not  less  than 
$900,000. 

COST   OF   THE    REVOLUTION    OF    1906. 

The  direct  cost  to  the  national  treasury  of  Cuba  of  the  revolution 
of  August,  1906.  is  shown  by  the  following  tabulated  statement.  The 
total  amount,  calculated  to  October  31,  1D07.  is  $8,634,116.64. 

Cost  of  insurrection  of  August.  WOO. 
[Calculated  to  October  31.  1007.1 


Item  of  cost, 

Amount. 

Remarks. 

Disbursements  continue  under  this  item. 

from  August,  1906,  to  October 31, 1907. 
Pay 

822.  51 
287,460.54 
191, 
190,444.64 

Uniforms  and  miscellaneous  ex- 
penses. 

1,319,256.68 

Machine  (inn  Company,  August,  1906, 
to  October  :U.ni07. 
Pay 

Do. 

30.397.1:. 

2,647,18 
1,675.  v"' 

44,215.83 

Militia  force-  (aboul  11,000 men): 

Pay 

1,058,980.  15 
1.  173, 

Maintenance,  forage,  equipment, 
and  miscellaneous. 

■J.  532, 933.  7(". 

71 


Cost  of  insurrection  of  August,  1906 — Continued. 


Item  of  cost. 


Amount. 


Guns  and  ammunition 

Horses  purchased    in  Cuba  mid   the 


3776,977.81 


torses  purcnasei 
United  States. 


H6.788.97 


Saddles  and  harness 

Uniforms  and  dry  goods 

Fortifications 

Remittances  to  I  tovernment  agents  in 
provinces  for  fortifications,  pro- 
visions, military  supplies,  mid  mis- 
cellaneous. 

Two  i  !oast-(  ruard  vessels 

Win  less  telegraph  stations 

Printing  and  supplies 

Secret  expenses 

Destruction  of  public  bridges  and 
roads. 

Value  of  claims  pending  for  "supplies 
furnished  to  Governmenl  forces, 
etc.  (estimated  minimum  i 

Amounts  allowed  to  date  by  claims 
commission  on  claim  tor  damages 
caused  by  Insurgents. 

\  -line  Of  :  111  Ills  for  :1  mi  i,..-  :  ":<  lt\  in- 
surgents, pending  in  claims  com 
missiim  (estimated  minimum). 

Expenses  of  claims  commission  to 
October  81,  1W7.  except  railroad 
transportation. 

Quarters  for  United  states  Army  of 
Pacification,  to  October  31,  iw>7. 

Total  cost,  calculated  to  October 
81,  1907. 


t:;  681.64 
657,815.  17 


102,267.50 

hi  :  Hi ii 

10,270.68 

51,  107.60 

7,551.00 

33,300.00 


73s,  129.39 
900, 000. 00 
..11,807.98 
506, 823. 96 


8,631,1 16  64 


Bj  i   *   s    on  of  one  oi  the  contra  t-  ;■  r  arms 
and  ammunition,   the   Republic   has  - 
819,040 of  the  amount  comprised  in  thi*  Item. 

a  number  of  these  horses  bave  been  nold  at 
auction,  the  -ales  m   the  United  - 
ting    118,168.81      nd    tho»     in    Cuba   about 

(11,000.    over  -half   of   the   horses   pur 

chased  bave  died. 


The  greater  pari  oi  this  item  was  Bpenl  ior 
blockhouses,  barricades  and  other  fortifica- 
tions. 


The  total  amounl  It  is 

estimated  thai  th  allowed  will  not 

fall  below    - 

The  amount  claimed  was  SI, 688, 106.76, 


The  total  amount  claimed  i-  12,250.000.  It  Is 
estimated  that  the  amount  allowed  will  not 
full  below  S9t 

Disbursements  continue  under  this  item. 


Do. 


To  this  sum  must  be  added  the  cost  of  transportation  and  main- 
tenance of  the  American  forces  in  Cuba. 

It  is  not  feasible  to  estimate  1 1 1  < >  indirect  damage  caused  by  the  In- 
surrection, such  as  the  cheek  of  the  investment  of  capital,  the  loss  of 

credit,  etc. 


ARMY    OF    CUBAN    PACmCATTON— UNITED    -  -     rROOPS. 

Contemporaneously  with  the  establishment  of  the  provisional  ad- 
ministration, the  army  of  Cuban  pacification,  consisting  of  approxi- 
mately 0,000  men,  under  the  command  of  Brig.  <  Jen.  J.  Franklin  Bell, 
Chief  of  Staff,  U.  S.  Army,  was  distributed  throughout  the  island 
at  the  various  centers  of  population.  The  prompt  arrival  of  tl 
troops  at  their  stations  gave  confidence  and  encouragement  and  as 
si-ted  in  great  measure  the  work  of  restoring  order.  While  they 
were  not  called  upon  to  perform  any  military  operations  other  than 
the  marches  to  their  stations,  their  example  and  advice,  when  sought 
by  the  Cuban  people,  gave  proof  of  their  sincere  desire  to  work  for 
the  rehabilitation  of  (he  Republic.  Fortunately,  many  officers  of  this 
army  had  served  in  Cuba  during  the  first  intervention,  and  for  them 
it  was  renewing  old  friendship-  and  making  new   frit  nds  among  those 


72 

whom  they  had  noi  tnel  before.  The  distribution  of  troops  ;it  thai 
time  resulted  in  the  establishment  of  several  posts  which  have  beeD 
since  discontinued,  and  at  present  the  army,  numbering  approxi- 
mately .').:•,()()  men.  occupies  27  stations  throughoul  the  Island. 

[mmediately  after  th"  troops  were  settled  ;M  their  stations  they 
were  engaged  in  making  an  accurate  topographical  survey  of  the  dif- 
ferent provinces,  which  has  resulted  in  producing  an  excellenl  map 
of  Cuba  and  in  acquainting  officers  and  men  with  all  parts  of  Cuba 
and  its  people.  This  mingling  of  the  officers  and  soldiers  with  the 
Cubans  under  such  favorable  circumstances  has  had  a  beneficial  ef- 
fect. They  were  received  everywhere  as  friends  and  treated  accord- 
ingly. 

The  officers  of  the  army  of  Cuban  pacification,  especially  of  the 
Medical  Department,  have  assisted  materially  in  the  work  of  sani- 
tation, and  their  aid  has  been  sought  and.  their  recommendations 
carried  out  by  the  local  civil  authorities.  Their  work  has  now  been 
supplanted  by  the  establishment  of  a  national  board  of  sanitation, 
under  whose  direction  the  sanitation  of  the  island  is  being  carried  on. 
but  its  initiation  and  a  great  deal  of  necessary  sanitary  work  was 
voluntarily  performed  by  officers  of  the  army  of  Cuban  pacification. 

The  conduct  of  both  officers  and  men  of  this  army  lia s  been  most 
commendable.  No  serious  conflict  has  occurred  between  the  soldiers 
and  Cubans.  A  few  minor  affair-  resulting  from  the  misconduct  of 
enlisted  men  have  been  treated  charitably  by  the  Cuban  people  ami  no 
bad  feeling  has  resulted.  This  exemplary  conduct  on  the  part  of  the 
American  army  among  a  strange  people  deserves  the  highest  praise, 
and  is  due  in  great  measure  to  the  good  advice  and  intense  personal 
interest  of  its  first  commander,  now  Maj.  Gen.  J.  Franklin  Bell, 
whose  persona]  inspection  of  all  military  posts  and  whose  careful 
explanation  to  officers  and  men  of  the  requirements  necessary  under 
the  peculiar  circumstances  of  their  service  have  borne  excellent  fruit. 
This  good  state  of  discipline  lias  been  continuous,  both  under  com- 
mand of  the  late  (yen.  Theodore  J.  Wint  and  its  present  commander, 
Brig.  Gen.  Thomas  II.  Barry. 

Reports  from  Rural  Guard  officer--  and  Cuban  citizens  who  have 
come  in  contact  with  the  army  of  Cuban  pacification  are  strong  in 
their  praise  of  its  discipline  and  training.  Many  requests  for  de- 
tachments to  be  stationed  at  different  parts  of  the  island  had  to  be 
disapproved  to  prevent  too  great  a  dispersion  of  troops. 

The  present  high  state  of  efficiency  of  this  army,  notwithstanding 
the  large  number  of  recruits  recently  received,  reflect-  credit  upon 
General  Barry  and  the  officers  under  his  command.  The  enlisted  men 
of  this  army  are  held  in  high  esteem  by  their  Cuban  neighbors,  and  in 
general  it  may  be  said  that  by  their  good  conduct  and  example  they 
have  maintained  the  high  reputation  of  the  best  type  of  the  American 
soldier. 


73 

My  acknowledgment  is  due  to  the  entire  army,  and  especially  to 
General  Barry,  whose  prompt  and  active  cooperation  has  facilitated 

in  every  way  the  administration  of  affairs  in  this  island,  and  whose 
activity,  zeal,  and  constant  attention  to  the  needs  of  his  command  has 
made  it  a  power  whose  influence  for  peace  and  good  order  can  not  be 
measured  in  words. 

COLLISION    BETWEEN     MUNICIPAL    POLICE    OF    SANTIAGO    AND    SEAMEN    01 
THE   I  .  8.  S.  •"  TACOMA." 

The  only  serious  disturbance  of  the  peace  involving  Americans 
and  Cubans  occurred  at  Santiago  d<>  Cuba  on  April  30,  1907,  and 
was  caused  by  a  collision  between  the  local  police  and  seamen  on 
shore  leave  from  the  V.  S.  Cruiser  Tacoma.  Upon  investigation 
it  was  learned  that  a  number  of  seamen,  somewhat  intoxicated,  were 
returning  to  the  dock  at  about  I  a.  m.  from  a  banquet  at  a  <  afe  in  the 
city,  accompanied  by  two  civilians,  one  of  whom  proved  to  he  a  cap- 
tain of  police,  dressed  in  civilian  clothe-.  One  of  the  seamen  at- 
tempted to  take  a  sword  cane  from  this  captain  of  police  and  a  quar- 
rel ensued,  in  which  the  police  captain  was  struck  and  the  cane  taken 
from  him.  He  then  ran  away,  blew  his  whistle,  and  is  reported  to 
have  fired  two  revolver  >hots  into  the  crowd  of  seamen,  resulting  in 
seriously  wounding  one.  The  signal  brought  other  policemen  upon 
the  scene  and  a  genera]  quarrel  took  place  between  the  seamen  and 
the  local  police,  in  which  machetes,  clubs,  and  revolvers  were  used 
by  the  police,  the  seamen  making  use  of  stones,  bottles,  and  other 
available  objects.  The  result  was  that  r>  seamen  and  1  ensign  were 
hurt,  1  of  the  seamen  being  severely  wounded,  while  1  police  cap- 
tain and  -J.  policemen  received  -light  injuries.  The  affair  was  im- 
mediately investigated  by  the  local  authorities;  the  captain  and  the 
policemen  were  charged  with  exceeding  their  authority  and  sus- 
pended. Their  trial  has  been  postponed  awaiting  report  as  t"  the 
result  of  the  injuries  received  by  the  seamen  and  the  response  to  let- 
ters rogatory  sent  to  the  United  state-.  The  court  i-  now  in  posses- 
sion of  the  information  and  the  trial  will  proceed  without  delay. 

The  affair  was  probably  caused  by  the  intoxication  of  the  American 
seamen  and  the  fear  of  the  local  police  in  an  encounter  with  men 
much  larger  in  stature  ami  of  greater  bodily  strength.  While  on  the 
part  of  the  police  it  may  indicate  an  inclination  oi  too  free  use  of 
their  weapon-,  ii  i-  to  be  explained  by  a  lack  of  judgment  on  their 
pail  or  a  lack  of  more  careful  training.  It  doe-  not  appear  in  any  of 
the  reports  that  the  American  seamen  used  weapons  of  any  kind,  and 
the  prompt  actum  by  the  local  authorities  in  suspending  and  holding 
for  trial  the  policemen  engaged  in  this  quarrel  shows  a  lively  desire 
to  preserve  peace  and  harmony. 


74 

BANDITS   \  mi  THE   MASSO  PAB&A  G0NSPIRA4  1  . 

With  the  I'xccjilion  of  a  few  cases  of  cattle  stealing  and  forcible 
hold-ups  in  the  country  districts,  Cuba  has  been  singularly  free  from 
any  disturbance.  Nbl  a  single  Wand  of  marauders  ha-  appeared  in 
the  provinces  of  Pinar  del  Rio,  Habana,  Matanzas,  and  Camaguey. 
Four  prisoners  in  (he  jail  at  Bejucal,  in  Habana  Province,  broke  jail 
and  were  at  large  for  a  week  before  being  overhauled,  and  this  gave 
rise  t<>  a  rumor  that  a  band  was  out  in  Habana  Province.  With  this 
exception  there  has  been  no  recurrence  of  the  "bandits  with  which 
these  provinces  were  heretofore  annually  molested.  Tn  Santa  Clara 
Province,  as  also  in  Oriente,  there  have  been  three  small  bands  during 
the  past  year,  but  all  were  quickly  pursued  by  the  Rural  Guard,  who 
continued  the  chase  until  the  marauders  were  taken  into  custody  and 
placed  in  confinement. 

Early  in  July  rumors  became  prevalent  of  the  arrival  in  Cuba  of 
one  Masso  Parra,  a  Cuban  by  birth,  who  served  the  cause  of  the 
Cubans  in  the  war  of  1898,  but  who  deserted  early  in  1808  and  served 
the  Spanish  army  until  its  evacuation  from  the  island.  Masso  Parra 
arrived  at  Santiago  de  Cuba,  and  soon  after  I  received  visits  from  men 
of  prominence,  informing  me  of  the  danger  he  was  to  peace  and  good 
order,  and  advised  that  he  be  compelled  to  leave.  I  was  further 
informed  that  he  had  come  to  Cuba  during  the  administration  of 
Major-General  "Wood,  and  also  during  the  administration  of  Presi- 
dent Palma,  but  on  both  occasions  was  not  allowed  to  land.  He  soon 
arrived  in  Habana,  but  with  the  exception  of  a  few  notices  in  the 
newspapers  nothing  was  heard  of  him.  In  August  information  from 
private  sources  indicated  that  he  was  conspiring  to  disturb  the  peace 
and  order  of  the  island.  It  was  learned  that  he  had  recently  come 
from  Santo  Domingo,  where  he  had  taken  part  in  an  attempted  revo- 
lution which  had  failed,  and  at  first  it  was  thought  that  his  attempts 
to  secure  a  following  here  were  for  the  purpose  of  disturbing  the 
peace  of  Santo  Domingo,  but  additional  information  being  secured, 
it  was  evident  that  he  was  planning  an  insurrection  in  Cuba.  lie  had 
emissaries  who  went  from  Habana  to  different  parts  of  the  island 
fomenting  rebellion,  and  one  of  these  agents  proved  to  be  Lara  Miret, 
a  former  oflicer  in  the  Rural  Guard. 

Investigation  of  the  actions  of  Masso  Parra  and  his  associates 
brought  new  evidence  of  their  intentions.  The  public  rumor  that  he 
was  contemplating  an  early  uprising  gained  much  credence  early  in 
September.  Nothing  could  be  learned  definitely  in  regard  to  the 
matter  until  about  the  middle  of  the  month,  when  daily  reports  from 
secret  police  and  other  sources  made  it  evident  that  some  action  would 
soon  be  attempted.  This  conspiracy  took  definite  shape  in  the  form  of 
meetings,  communications  with  men  at  different  centers  of  popula- 


75 

tion,  and  collections  of  arms  and  ammunition.  About  September  24 
news  brought  by  the  secret  service  indicated  that  their  plans  were 
almost  completed.  The  names  of  all  the  conspirators  who  worked 
with  Gen.  Masso  Parra  were  secured  and  an  examination  of  all  the 
data  available  led  to  the  conclusion  that  the  whole  movement  was 
being  directed  by  a  few  chosen  spirits  under  Masso  Parra.  while  the 
rest  were  following  blindly,  as  tools,  the  orders  of  this  revolutionist. 
Through  the  efforts  of  secret  police  the  place  of  meeting  of  this  rev- 
olutionary committee  became  known,  and  steps  were  taken  to  secure 
information  as  to  all  that  passed  in  these  meetings.  It  was  Learned 
that  the  meeting  which  took  place  on  September  25  was  t<i  lie  the 
last  one  before  the  outbreak,  and  soon  after  this  meeting  was  ended 
on  the  evening  of  the  25th,  a  full  report  of  its  proceed  ings  was  made 
to  me. 

The  report  revealed  the  intention  of  the  conspirators  to  have  an 
armed  uprising  for  the  purpose  of  overthrowing  the  provisional  gov- 
ernment, and  to  more  readily  accomplish  this,  as  the  forces  in  the 
beginning  would  be  small,  it  was  determined  to  destroy  bridges,  bum 
the  property  of  foreigners,  and  kill  Americans.  They  relied  upon 
securing  enough  dynamite  from  the  public  works  in  the  various  parts 
of  the  island  to  carry  on  the  work  of  destruction.  These  facts,  ob- 
tained from  reliable  sources  of  information,  rendered  it  imperative 
that  some  action  be  taken  at  once,  and  it  was  determined  that  tjie 
three  leaders  of  the  conspiracy  should  he  arrested,  hoping  thereby  to 
prevent  disturbance.  As  the  time  set-  for  the  insurrection  was  Sep- 
tember 27,  it  was  decided  to  arresj  these  men  at  once,  and  on 
the  morning  of  September  2C>  the  police  were  directed  to  arrest  Gen. 
Masso  Parra,  Gen.  Lara  Miret.  and  Gen.  Juan  Ducasse,  charging 
them  with  conspiring  against  the  Government.  The  examination  of 
these  men  disclosed  others  equally  culpable,  and,  by  order  of  the  ex- 
amining magistrate,  4  others  were  arrested  and  placed  in  confinement 

The  immediate  effect  of  these  arrests  was  most  quieting.  Rumors 
of  disturbance  ceased  at  once  and  the  country  relapsed  into  quietness, 
with  no  evidence  of  any  intended  insurrection  in  any  part.  Of  these 
7  men  General  Ducasse  was  admitted  to  bail,  and  his  case  has  since 

been  dismissed  on  account  of  lack  of  evidence.  'The  other  6  men  ar- 
rested, namely,  Masso  Parra.  Yincente  Gomez,  Gabriel  Guerra 
Santos.  Lara  Miret.  Manuel  Vila  Rodriguez,  and  Juan  Bautista 
Martinez,  alias  "  1  lahanero."  are  still  in  jail  awaiting  trial. 

I  believe  this  attempted  conspiracy  was  brought  about  solely  by 
the  instrumentality  of  Masso  Parra,  whose  Life  has  been  devoted  to 
revolutions.  These  conspirators  have  been  placed  at  the  disposition 
of  the  civil  courts  and  their  trials  will  lake  place  early  in  1  December. 

This  movement  had  no  support  whatever  from  the  Cuban  public,  and 
the  few  followers  that  were  said  to  have  been  willing  to  trust  to  its 


76 

fortunes  were  loud  in  their  denials  after  the  arresl  of  the  leaders.  The 
prompt  arrest  and  confinement  of  those  engaged  in  thi^  conspiracy 
has  given  assurance  thai  public  order  and  peace  in  the  island  will  be 
maintained,  and  the  hearty  support  of  the  Cuban  people  to  the  sup- 
pression of  such  disturbances  is  evidence  of  their  Loyalty  t<>  the  Gov- 
ernment. It  is  believed  that  the  conviction  and  punishment  of  these 
men  will  be  a  salutary  Lesson  for  other  restless  spirits,  who  regard  ac 
a  privilege  an  annual  outing  in  the  Cuban  mountains  when  the  spiril 
of  lawlessness  moves  them. 

Capt.  James  A.  Ryan,  Fifteenth  I '.  S.  C:i\  airy,  detailed  as  military 
aid  to  the  provisional  governor,  is  entitled  to  special  mention  and 
commendation  for  his  arduous  and  effective  work  in  unearthing  this 
conspiracy  and  securing  the  evidence  necessary  to  justify  the  action 
of  the  civil  authorities.  Through  his  effort-  and  his  direction  of  tie- 
agencies  placed  at  his  disposal,  the  plans  and  personnel  of  this  ad- 
venture were  known  to  the  Government  from  the  beginning,  and 
sufficient  evidence  was  collected  of  overt  acts  of  rebellion  to  make  it 
unnecessary  to  wait  for  the  conspirators  to  take  to  the  field  or  inflict 
injury  upon  persons  or  property. 

ADMINISTBATIVE  CONDITION. 
EXECUTIVE    DEPARTMENTS. 

The  work  of  all  the  executive  department-  during  the  past  year  was 
greatly  in  excess  of  any  previous  year.  A  full  and  complete  exposi- 
tion of  their  services  is  set  forth  in  reports  of  the  acting  secretaries 
transmitted  with  and  made  a  part  of  this  report  I  have  attempted 
to  summarize  these  reports,  but  find  these  summaries  fail  to  convey  an 
adequate  idea  of  the  amount,  character,  and  importance  of  the  work 
performed  or  the  excellence  and  care  of  the  performance.  I  espe- 
cially request  careful  and  complete  reading  and  consideration  of  these 
interesting  and  informing  documents. 

The  plan  adopted  by  the  Peace  Commission  for  the  administration 
of  these  department-  was  to  confer  the  duties  of  the  heads  of  the 
departments  upon  the  chief  clerk-.  They  have  since  been  designated 
as  acting  secretaries.  The  plan  included,  also,  the  detail  of  an  officer 
of  the  United  States  Army  as  adviser  to  each  acting  secretary  The 
plan  has  worked  to  very  good  advantage  and  accomplished  excellent 
results.     The  acting  secretaries  are  as  follow-: 

Department  of  state,  Justo  Garcia  Velez. 

Department  of  justice,   Manuel   Lamia. 

Department  of  government.  Manuel  Sobrado. 

Department  of  hacienda   (treasury),  Gabriel  Garcia  Echarte. 

Department  <>f  public  Instruction,  Lincoln  de  Zayas. 

Department  of  public  works,  Diego  Lombillo  Clark. 

Department  of  agriculture,  industry,  and  commerce,  Francisco  I.  Vildosola. 


77 

The  United  States  Army  officers  acting  in  an  advisory  capacity 
are:  Departments  of  state  and  ju-tice,  Col.  E.  H.  Crowder;  depart- 
ment of  government,  Lieut.  Col.  E.  St.  J.  Greble;  department 
public  work-.  Lieut.  Col.  W.  M.  Black;  department  of  sanitation, 
Maj.  J.  R.  Keau:  commanding  general,  armed  forces,  Maj.  II.  J. 
Slocum;  also  department  of  hacienda  (treasury),  Maj.  J.  I).  Terrill, 
United  States  Treasury  Department. 

The  American  advisers  serve  a  good  and  useful  purpose,  with  the 
ability  and  fidelity  which  we  are  accustomed  to  expect  and  secure 
from  the  officers  of  the  United  Si  ate-  Army. 

The  acting  secretaries  have  each  and  all  performed  the  dutii 
their  officer  with  judgment,  discretion,  and  fidelity  to  the  principles 
of  good  government.  Their  task  lias  been  difficult,  for.  in  addition  to 
a  great  volume  of  varied  services,  they  were  required  to  readjust  and 
re-form  the  working  of  their  department-  to  aero:  1  with  American 
ideas  of  administration,  while  the  personnel  were  accustomed  to  an 
established  routine  considerably  different. 

In  addition  to  the  commendable  work  of  the  head-  of  the  depart- 
ments, services  were  rendered  and  administrative  ability  displayed  by 
the  heads  of  the  several  subdivisions  into  which  the  departments 
were  divided;  two  of  them,  at  least,  are  entitled  to  special  mention  for 
meritorious  service — Mr.  Charles  Hernandez,  director-general  of 
posts  and  telegraphs,  and  .Mr.  Saturnino  Lastra,  collector  of  customs 
for  the  port  of  Habana. 

When  the  provisional  administration  was  established  there  were 
many  and  constant  complaints  as  to  the  inadequacy  and  inefficiency 
of  the  postal  and  telegraph  service.  The  cyclone  of  October,  1906, 
practically  demolished  the  Government  telegraph  line-  and  greatly 
increased  the  public  dissatisfaction.  Mr.  Hernandez  was  appointed 
director  of  posts  and  telegraphs  October  29,  190»'>.  and  immediately 
entered  upon  a  vigorous  and  successful  endeavor  to  restore,  reform, 
and  improve  the  service.  The  beneficial  results  of  his  administration 
are  shown  in  the  reports  of  the  department  of  government,  and  by  the 
fact  that  no  complaints  respecting  the  service  have  reached  this  office 

for  more  than  six  months. 

Under  Mr.  Lastra 's  administration  of  the  I  Cabana  custom-house  an 
increased  volume  of  work  has  been  efficiently  handled  and  numerous 

improvements    and    reforms   etl'ected.    among   them    simplified    main 
fest>-  Tor  ships,  adoption  of  a  rule  permitting  -hip-  to  signal  inquiries 
for  cargo  without   entering  the   port   or  payment   of  poii   charj 
repeal  of  burdensome  restrictions  on  the  coastwise  trade  and  -hip 
ping,  reform  in  erroneous  classifications  of  importations,  adjustment 
of  many  long-pending  controversies  with   importer-,  and 'the  ■■  tab- 
lishment  of  a  better  feeling  and  footing  between  importers  and  the 
customs  officials. 


78 

I  could  extend  the  lis!  of  those  whose  commendable  service  is  <'iiii- 
tlctl  to  mention  Indefinitely,  :in<l  attention  is  * -: 1 1 1 « -< I  to  this  fad  as 
establishing  thai  it  is  noi  a!  all  difficult  to  secure  Cubans  well  qual- 
ified  to  perform  all  services  included  in  the  Executive  branch  of  the 

( iovernnienl. 

DEPARTMENT  OF   STATE   AND   JUSTK  l .. 

The  administration  of  the  department  of  state  and  justice  is  sei 
forth  in  detail  in  the  reports  of  the  acting  heads  of  the  sections  of 
state  and  justice,  respectively.  The  more  important  features  are  the 
following: 

Section  of  state. — Upon  the  establishment  of  the  provisional  gov- 
ernment notice  thereof  was  conveyed  to  all  diplomatic  and  consular 
agents  of  Cuba,  and  they  were  confirmed  in  their  offices.  The  main- 
tenance of  cordial  relations  with  foreign  representatives  accredited 
to  this  Government  has  continued. 

An  extradition  treaty  has  been  consummated  with  the  Dominican 
Republic,  and  the  adhesion  of  the  nation  has  been  declared  to  various 
conventions  of  international  character,  as  follows:  The  convention 
concerning  the  law  and  customs  of  war  on  land,  the  adaptation  of 
the  Geneva  Convention  of  1864  to  maritime  warfare,  and  the  conven- 
tion for  the  peaceful  settlement  of  international  conflicts,  which  were 
signed  at  the  Hague  in  1899 ;  the  convention  to  improve  the  conditions 
of  soldiers  wounded  in  the  armies  in  the  field,  signed  at  Geneva  in 
1864;  the  second  international  sanitary  convention  of  the  American 
Republics ;  the  convention  and  protocol  of  the  Universal  Postal  Union 
concluded  at  Rome,  and  regulations  for  the  execution  thereof;  and 
the  convention  for  the  establishment  of  an  international  institute  of 
agriculture  in  Rome,  signed  June  7,  1906. 

The  Government  has  attended,  through  its  delegates,  international 
conferences,  congresses,  and  expositions,  including  the  Second  Peace 
Conference  held  at  The  Hague;  the  Fourteenth  International  Con- 
gress of  Hygiene  and  Demography,  at  Berlin;  the  Congress  of  the 
National  Prison  Association,  at  Chicago;  the  Third  International 
Sanitary  Conference  of  the  American  Republics,  at  Mexico:  and  the 
Military  and  Naval  Exposition,  at  Hampton  Roads,  Virginia. 

On  assumption  of  office  I  directed  a  general  inspection  of  all  con- 
sulates of  Cuba  in  Europe  to  be  made,  appointing  for  that  purpose  a 
consul-general  as  inspector  of  consuls.  The  results  have  been  bene- 
ficial and  are  being  made  the  basis  of  new  regulations  governing  the 
consular  service,  now  being  prepared  in  the  section  of  state. 

Various  extraditions  have  been  requested  of  foreign  governments. 
which,  as  a  rule,  have  been  granted.  The  Government,  on  the  other 
hand,  has  in  general  honored  the  request  of  other  nations  for  extradi- 
tions. 


79 

The  receipts  in  the  consulates  and  legal  ions  of  Cuba  abroad  under 
the  consular  tariff  law  amounted  to  $385,000  during  i In*  period  cov- 
ered by  this  report,  and  collections  for  violation-  of  the  law  amounted 
to  $6,421.22,  making  the  total  receipts  $391,421.2-2.  The  total  amount 
expended  in  diplomatic  and  consular  service  was  $3!>,.>.17:'>.17.  which 
shows  a  contribution  to  this  department  from  the  national  treasury 
of  less  than  $8,000. 

Section  of  justice.  The  section  of  justice  has  the  supervision  of 
judicial  administration,  notarial  administration,  registrars  of  prop- 
erty and  registration  of  convicts,  last  wills  and  testaments,  penal  in- 
stitutions, and  judicial  statistics. 

Opinions  on  questions  of  law  requested  by  the  provisional  governor 
and  chiefs  of  other  Executive  departments  are  rendered  by  this 
section. 

An  adjunct  to  the  section  is  the  claims  commission  created  by  de- 
cree No.  L58,  November  22,  1906,  to  investigate  and  report  on  all 
claims  against  the  Government  arising  out  of  the  recent  insurrection. 

There  have  been  acted  upon  in  the  section  of  justice  2,776  applica- 
tions for  pardon,  of  which  45G  have  been  granted. 

Supervision  and  rigid  inspection  of  the  courts  of  the  island  and  of 
the  registries  of  property  have  been  made,  and  summaries  have  been 
prepared  of  conveyances  of  real  estate. 

Many  improvements  and  reforms  in  governmental  administra- 
tion and  amendment  of  general  laws  have  originated  in  this  depart- 
ment and  needed  legislation  suggested  and  drafted. 

DEPARTMENT  OF  GOVERNMENT. 

The  administration  of  the  department  of  government  has  been 
through  three  sections,  which  were  reorganized  shortly  after  the 
establishment  of  the  provisional  government. 

Section  1  has  charge  of  affairs  relating  to  the  department  of  char- 
ities, penal  institutions,  and  to  certain  matters  connected  with  sani- 
tation. 

Section  2  deals  with  affairs  relating  to  the  department  of  communi- 
cations (posts  and  telegraphs),  public  order,  police,  cattle  registry, 
copyright  law.  official  printing,  the  censorship  of  theater.-.  Official 
Gazette,  has  charge  of  the  purchase  of  supplies  for  the  department 
and  of  the  personnel,  the  national  archive-,  the  archives  of  the  lib- 
erating army,  and  a  Hair-  of  a  general  character  not  classified  III  any 
of  the  other  sections.  It  also  keep-  the  record-  and  prepares  the 
decrees  for  the  concessions  of  private  telephone  systems  and  electric- 
power  plants  and  makes  the  prescribed  inspections  of  these. 

Section  3  is  intrusted  with  all  matters  connected  with  the  organ- 
ization and  acts  of  municipal  and  provincial  government-,  adminis- 


trative  appeals   from   local  authorities,  local  and   rural   police,  ami 
matters  relating  to  Local  roads.     It  also  supervises  the  awarding  of 
public  bids  relating  to  the  department  and  hats  charge  of  the  -tati-- 
of  t  he  island. 

The  department  of  government  further  has  charge  of  the  secret 
police  and  supervision  over  the  police  of  Habana. 

The  principal  work,  outside  of  routine  matters,  performed  by  the 
department  has  been  the  classification  of  the  hospitals  ;in<l  an  attempt 
to  better  their  administration  and  equipment.  Many  needed  repairs 
in  the  hospitals  have  been  carried  to  a  conclusion,  and  plan-  are  r 
idly  being  prepared  for  repairs  to  all  the  hospital-  in  the  island. 
A 1  >< »ui  S500.000  have  already  been  -pent  or  authorized  for  equipments 
and  repairs  in  these  hospitals.  The  additional  plans  under  prepara- 
tion will  probably  amount  to  s-200.000,  and  it  is  believed  that  when 
these  are  completed  the  hospitals  in  the  island  will  have  proper  ac- 
commodation and  sanitary  installations  for  the  deserving,  poor  sick. 

The  insane  asylum  at  Mazorra  was  in  had  condition.  Its  accommo- 
dations were  for  about  600  insane,  yet  nearly  1.000  were  crowded  into 
this  asylum,  without  beds,  bedding,  and  clothes.  One  hundred  and 
sixty  thousand  dollars  had  been  appropriated  on  June  L8,  L906,  by  the 
Cuban  Congress  for  enlarging  this  institution,  but  no  steps  had  been 
taken  to  spend  this  money.  Practically  all  of  this  sum  has  been  spent 
under  the  provisional  government  for  equipments,  new  constructions. 
and  repairs.  An  additional  $45,000  will  place  this  institution  in 
proper  condition  to  care  for  approximately  2.000  insane.  Plans  are 
being  prepared  for  this  work.  The  work  carried  out  in  this  institu- 
tion was  done  under  the  direct  supervision  of  Lieut.  Ralph  McCoy,  of 
the  Twenty-seventh  U.  S.  Infantry. 

The  Correctional  School  for  Boys  was  found  in  a  thoroughly 
disorganized  condition.  Capt.  Jens  Bugge,  of  the  Twenty-eighth 
United  States  Infantry,  was  placed  in  charge  of  this  school,  and 
under  his  supervision  it  was  partially  reorganized  and  equipped, 
and  the  boys  put  back  to  work  in  their  schools,  work  -hop-,  and  oil 
the  farm. 

The  Correctional  School  for  Girls  ai  Aldecoa  ha-  had  extended 
repairs  made  to  the  buildings,  the  roofs  of  which  were  in  a  dangerous 
condition.  A  new  house  has  been  built  for  the  sisters  in  charge  of 
this  school.  Additional  land  has  been  acquired  from  the  municipal 
council  at  Habana,  the  institution  has  been  placed  in  thorough  repair, 
and  at  present  can  take  care  of  •_''>(>  children. 

The  penal  institutions  have  been  inspected  and  they  are  fast  being 
repaired,  given  proper  sanitary  installations  and  equipped  with 
beds,  bedding,  and  clothes  for  the  prisoners.  ( >r.e  hundred  and 
seventy-one  thousand  five  hundred  and  twenty-five  dollars  have  been 
appropriated   for  the  above  purposes,  and  this  work  is  in  a  satis- 


81 

factory  state  of  progress.     The  department   of  public  works   i 
present  engaged  upon  plans  for  a  new  jail  at  Santiago  de  Cuba. 

The  department  of  posts  and  telegraphs  has,  as  above  stated,  been 
excellently  administered  by  Col,  Chas.  Hernandez,  who  was  ap- 
pointed director-general  of  communications  <>n  the  29th  of  October, 
1906.  During  the  year  of  his  incumbency  the  mailing  and  distrib- 
uting force  has  been  thoroughly  reorganized,  telegraph  Lines  throi 
out  the  island  have  been  repaired  and  extended,  26  new  post-offi 
have  been  created,  •">-">  new  money-order  offices  established,  contra 
have  been  made  with  the  P.  and  ( ).  Steamship  Company  so  that 
mails  ran  he  sent  almost  daily  to  the  United  States,  a  system  <<\  par- 
cels post  has  been  established  in  15  offices,  and  the  policy  established 
of  appointing  in  small  town-  telegraph  operators  a-  postmasters,  so 
that  one  employee  could  perform  the  duties  of  both  offices.  In  the 
telegraph  service  32  new  offices  have  been  opened  and  arrangements 
made  for  the  establishment  of  six  wireless  telegraph  station-  which 
were  contracted  for  by  the  former  government.  These  stations  will 
shortly  be  in  working  order.  Wireless  telegraphic  communication 
has  been  established  between  Habana  and  the  Isle  of  Pine-.  During 
the  year  from  October.  1906,  to  September  30,  L907,  16  u  w  mail 
routes  have  been  established,  delivering  16,866  mails  annually.  The 
parcels-posl  treaties  with  the  German  Empire  and  France  and  tin- 
postal  convention,  or  treaty  of  Borne,  have  been  put  in  effect. 

Section  :;  is  at  present  at  work  upon  a  map  of  the  Island  of  Cuba 
which  will  show  the  provincial,  municipal,  and  barrio  boundai 
This  work  will  be  exceedingly  valuable,  as  there  has  been  in  the  past 
much  conflict  as  to  the  territorial  limits  of  the  municipalities.     It  is 
expected  that  this  work  will  be  completed  within  the  next  -i\  months 

A  section  of  constructions  has  also  been  created  with  the  proper 
technique  and  personnel  for  carrying  out  works  of  construction  and 
repairs  in  the  institutions  or  other  buildings  tinder  charge  of  the 
department  of  government;  and  it  i-  believed  that  through  it  the 
asylums,  hospitals,  and  jails  may  he  kept  in  proper  repair.  This  Bu- 
reau has  assisted  in  repairing  the  public  buildings  in  Habana. 

The  various  sections  of  the  department  have  done  an  immense 
amount  of  routine  work,  and  this  with  a  reduced  personnel  resulting 
from  the  reorganization  of  the  office.  The  large  amount  of  work 
found  in  the  department  which  had  been  unacted  upon,  due  to  the 
revolution  of  last  yr-.w.  ha-  been  brought  to  date.  The  chief-  of  tl 
sections  have  worked  intelligently  ami  cheerfully,  without  regard  t<> 

hours,   when   their  services   were   required,   and    deserve   this   merited 

recognition  of  services  which  have  made  th<  work  of  tin-  department 
possible. 

("apt.  James  L.  Bevans,  Medical  Department,  U.  S.  A.rmy,  has  been 
on  duty  in  the  department  since  <  October  31, 1906.    He  has  had  chai 

23706—08 6 


82 

of  the  work  connected  with  charities  and  penal  Institutions.     The 
work  coming  under  his  supervision  has  been  executed  with  energy 

and  efficiency. 

I  RE  LSI  i:v    DEPARTMENT. 

The  reporl  of  the  treasury  departmenl  shows  thai  the  collection 
of  public  revenues  from  all  source-  has  been  maintained  al  a  good 
figure  and  that  the  condition  of  the  treasury  of  Cuba  is  prosperous, 
a  situation  due  in  great  asure  to  the  proper  and  intelligent  direr- 
lion  of  the  treasury  officials! 

The  treasury  departmenl  comprises  thirteen  bureaus  to  which  mat- 
ters of  the  utmost  importance  are  intrusted.    They  ai 

The  central  comptroller's  office,  which  keeps  the  accounts  of  re- 
ceipts and  collection-  of  public  moneys  in  methodical  and  systematic 
order. 

The  general  auditor's  office,  which  audits  accounts  as  to  expendi- 
tures and  receipts,  carefully  supervising  tin'  handling  of  public  fund- 
by  the  various  departments  of  the  Government. 

The  treasury,  which  has  the  keeping  of  the  public  fund-. 

The  central,  paymaster's  office,  which  pay-  the  salaries  and  ex- 
penses of  the  central  government  departments  and  of  such  offices  as 
are  not  paid  by  the  local  fiscal  zones. 

The  bureau  of  statistics,  which  collects  and  publishes  data  relative 
to  commerce  and  trade,  agriculture,  industries,  immigration,  local 
finances,  and  other  matters  of  general  interest.  During  the  past 
year  it  has  published  interesting  pamphlets  giving  figures  in  regard 
to  the  sugar  crop,  the  consumption  of  cattle  and  the  cattle  industry, 
importations  and  exportations,  immigration,  and  municipal  budget-. 

The  quarantine  service,  which  has  made  constant  and  efficient  ef- 
forts to  prevent  the  introduction  into  the  Republic  of  quarantinable 
and  other  contagious  diseases.  The  officers  of  this  service  at  all  ports 
have  during  the  past  year  inspected  4,173  ocean  steamers  and  402,688 
persons,  vaccinated  8.77-1  persons,  and  committed  328  cases  of  sickness 
to  the  hospitals.  The  quarantine  service  has  (on  November  22.  1907) 
been  transferred  to  the  department  of  sanitation. 

The  customs  bureau,  which  is  one  of  the  principal  bureau-  of  the 
Government,  having  supervision  over  all  the  custom-houses  of  the  Re- 
public. By  constant  vigilance  it  has  maintained  a  uniformity  of  in- 
terpretation among  the  customs  officials  of  the  island  as  to  the  correct 
classification  of  goods  under  the  customs  tariff  and  as  to  the  applica- 
tion of  the  customs  regulations.  For  the  purpose  of  correcting  errors 
the  bureau  makes  a  careful  and  minute  examination  of  all  entries  and 
other  documents  forwarded  by  the  various  custom-houses,  the  num- 
ber of  entries  examined  and  verified  from  September  29,  1906,  to 


83 

September  30,  1907,  being  1 4!  Ml  2.    This  bureau  includes  the  division 
of  protests,  navigation,  and   revenue  cutters,  which  has  done  good 

work. 

The  bureau  of  special  imposts,  which  is  charged  with  the  collec- 
tion and  administration  of  the  internal-revenue  taxes  provided  for 
the  service  of  the  $35,000,000  Speyer  loan.  New  rule-  of  procedure 
have  been  adopted  to  make  the  work  more  effective,  and  the  bureau 
has.  during  the  time  covered  by  the  report,  collected  a  total  of 
$4,050,859.20. 

The  immigration  service,  which  supervises  immigration  into  the 
island  according  to  the  immigration  law.  1  hiring  the  year  the  immi- 
grant camp  at  Triscornia,  near  Habana.  has  been  maintained  in  per- 
fect sanitary  condition  and  its  accommodations  increased. 

The  bureau  of  state  property  and  legal  affairs,  which  keeps  the 
necessary  lists  of  real  property  belonging  to  the  State,  and  supervises 
the  administration  of  the  same,  advises  the  various  officials  of  the 
treasury  depart  in.  sit  in  legal  matters  and  investigates  and  verifies  the 
payment  of  conveyance  taxes  in  the  fiscal  zone-.  This  bureau  has 
been  engaged  in  a  thorough  investigation  for  the  ascertainment  of  all 
real  property  of  the  State. 

The  bureau  of  revenues  and  imposts,  which  has  the  inspection  of 
municipal  budgets  and  accounts,  and  of  the  collection  of  territorial, 
industrial,  corporation,  and  other  taxes. 

The  central  army  pay  office,  which  has  charge  of  disbursing  to  the 
persons  authorized  the  amounts  of  the  two  loan-  contracted  for  the 
payment  of  the  Cuban  army  of  liberation — the  army  which  carried 
on  the  war  of  1895-1898. 

And  finally,  the  bureau  of  miscellaneous  affairs  and  office  of  the 
secretary,  which  has  charge  of  matters  pertaining  to  the  personnel  and 
keeps  the  records  of  the  department. 

All  of  these  bureaus  have  had  a  very  large  amount  of  routine 
work,  which  they  have  well  performed.  Their  several  reports  con- 
stitute an  interesting  exposition  of  the  work  done.  I  hex  arc  accom- 
panied by  a  number  of  tables  giving  detailed  data  a-  to  the  amounts 
collected  and  disbursed,  the  items  of  revenue  and  disbursements,  the 
state  of  the  Treasury,  foreign  trade,  immigration,  municipal  budgets 
and  routine  work. 

The  acting  secretary  recommends  the  establishment  of  new  immi- 
grant and  quarantine  stations  at  Santiago  de  Cuba,  Nuevitas,  and 
Cienfuegos;  the  pressing  of  the  work  of  investigating  and  register- 
ing in  the  registers  of  property,  the  real  property  belonging  to  the 
state;  the  free  cancellation  of  "  censo "  annuities  pertaining  to  the 
state;  and  the  -ale  of  such  real  estate  a-  was  forfeited  to  the  Govern- 
ment for  overdue  taxes,  ordered  returned  to  it-  owners  by  a  military 
order  of  1899,  but  has  not  been  so  restored. 


- 1 


DEPARTMENT  OF  PI  BLIC  I  N61  Rl  <   I  [ON. 

The  department  of  public  instruction  is  divided  into  two  sections, 
primary  instruction  and  superior  instruction,  the  latter  subdivided 
into  two  departments,  the  institutes  and  the  national  university. 
The  stale  also  supports,  in  connection  with  iis  section  of  superior 
instruction,  the  school  of  arts  and  trades,  tin-  school  of  painting  and 
sculpt ure,  ami  the  nat ional  library. 

For  primary  instruction  there  are  over  3,700  public  school  teachers, 
about  l.'lo.lil  pupils  enrolled,  and  106  Boards  of  Education  on  the 
island. 

The  armed  movement  of  August,  1906,  produced  dire  results  in  the 
school  attendance.  Except  in  a  few  important  cities  the  attendance 
dwindled  to  insignificant  proportions,  and  in  the  rural  districts  of 
Pinar  del  Uio  and  Santa  Clara  provinces  it  practically  ceased.  The 
Department  spared  no  effort  to  remedy  the  situation.  Special  school 
inspectors  were  appointed  and  the  necssary  school  material  furnished, 
and  by  December  1  the  school  attendance  was  raised  to  its  former 
standard,  as  appears  from  the  following  table: 


Province. 

Attendance  for  1 1 1 >  -  month  of  l 
ber  in  L905  and  1906. 

Total 
1906. 

Total 

I  ii- 

White. 

Colored. 

Malr. 

Female. 

16,346 
12,473 
8,  195 
L5.211 
4,576 
8,140 

6,014 
7,075 
1,016 

3,693 

12,269 
10,021 

t,4:;t 

12,225 

•_'.  957 

10,758 

7.07. 

10, 061 

2,635 

1,732 

23,027 
19,054 
14,509 
22,286 

11,  >n:; 

21,240 
• 
11.  421 
25. 043 
6,  246 
U.,291 

1.7-7 

Santiago  de  Cuba 

88 

■ 

542 

Total 

65,241 

31, 060 

52,  010 

44.  ^;<1 

96,301 

97. 5-J9 

1,228 

Since  then  the  attendance  has  been  up  to  the  average  standard. 
The  most  important  steps  in  connection  with  the  public  schools  have 
been  the  movement  toward  the  grading  of  the  schools  in  a  pedagogic 
and  scientific  manner,  the  number  of  special  branches  taught  and  the 
wider  scope  given  to  those  which  already  existed  in  the  school-  of 
Cuba.  In  the  school  term  of  1905-6,  the  following  special  branches 
were  taught :  Kindergarten,  sloyd  in  wood,  and  physical  training. 
During  the  past  year  the  following  special  branches  have  been  added  : 
Lace  work,  sewing  and  pattern  work,  drawing  and  modeling,  sloyd 
in  cardboard,  sloyd  in  metal,  and  music 

The  normal  education  of  teachers  i-  receiving  serious  attention  and 
an  elaborate  plan  for  high  schools  has  been  matured  by  the  board  of 
superintendents. 

The  principal  institute-,  one  in  each  province,  prepare  their  pupils 
for  the  degree  of  bachelor.  The  professors,  by  virtue  of  the  law  of 
July  ff.  L906,  have  had  their  salaries  increased,  special  appropria- 
tions have  been  made  for  the  purchase  of  scientific  material,  and  ex- 


85 

animation  methods  have  been  rendered  less  cumbersome  and  compli- 
cated  for  both  professors  and  scholars.  The  state  contributed  the 
sum  of  $268 .s<>0  for  the  maintenance  of  the  six  provincial  institutes 
during  the  past  year. 

The  national  university  receives  $357,358  from  the  state.  It  is 
divided  into  three  faculties— Belles  letters  and  sciences,  medicii 
pharmacy,  and  law.  At  the  request  of  the  university  some  changes 
have  been  effected  in  its  course  of  "-Indies,  in  the  division  of  it-  facul- 
ties, and  in  the  degrees  which  it  confers.  Among  the  most  important 
may  be  mentioned  the  division  of  the  faculties  of  science,  the  amplifi- 
cation of  the  school  of  agronomy,  the  righl  to  confer  the  degree  of 
doctor  of  dental  surgery,  the  installation  of  a  department  of  X  and 
Pinsen  rays  and  a  clinic  at  the  "  Mercedes"  Hospital,  and  the  con- 
struction of  new  and  spacious  buildings  on  the  university  grounds. 
The  salaries  of  all  the  professors  have  been  increased  in  compliance 
with  the  law  passed  by  the  Cuban  Congress  on  July  11.  L906; 

The  School  of  Arts  (manual)  and  Trades,  which  the  military  gov- 
ernment of  intervention  raised  to  a  high  degree  of  excellence,  has  been 
amply  provided  for.  An  appropriation  of .$41,000  has  been  mad.'  for 
this  institution,  which  provides  both  day  and  night  instruction,  and 
turns  out  skilled  workmen  and  artisans. 

The  slate  contributes  $16,060  toward  the  School  of  Painting  and 
Sculpture-,  at  which  over  500  pupils  are  enrolled  this  year.  Among 
the  changes  introduced  has  been  the  appointment  of  a  woman  teacher 
for  the  female  pupils  in  the  class  of  anatomy  and  drawing  from  the 
living  model. 

The  national  library  was  founded  by  (ieneral  Wood,      I|-  personnel 
has  recently  been  reorganized  and  increased,  and  to-day  its  she) 
contain  over  40.000  book-.     The  state  annually  contributes  $11,1 
toward  its  support. 

DEPARTMENT   OE    l'l  BUG    WORKS. 

The  work  of  the  department  of  public  works  covers,  in  general, 

public  work-  of  all  kind-  executed  with  state  fund-,  and  also  the 
investigation  ol'  petitions  for  concessions  to  private  parties  or  cor- 
porations for  work-  of  public  utility,  or  those  involving  the  use  of 
the  public  domain.  The  works  are  carried  on  and  materials  are 
bought  under  contract  or  otherwise,  as  may  be  mosl  economical  and 
advantageous  to  the  Government,  under  the  same  regulations  as  pre- 
vail in  the  public  works  of  the  CJnited  State-. 

At  it>  last  regular  session  the  Cuban  Congress  had  mad.'  liberal  ap- 
propriations for  public  work-,  covering  123  specific  work-,  of  which 
46  had  been  started  prior  to  the  e-tabli-hui.Mii  of  the  proi  isional  gov- 
ernment.    In  measure  as  the  -late  of  the  treasury  became  known,  and 


86 

the  expert  personnel  <>l'  the  department  increased,  more  works  were 
begun. 

During  the  period  Prom  July  1.  L907,  to  September  30,  L907,  the 
total  payments  of  the  department  amounted  to  $8,420,677.46.  The 
monthly  averages  of  payments  were :  July  !<>  September,  L906  (  Palma 
Government),  $329,141.78;  October,  L906,  to  June,  L907  (provisional 
government) ,  $534,588.90 ;  July  to  September,  1  - > < > 7  (provisional  gov- 
ernment) ,  $873,984.  During  October,  L907,  the  payments  aggregated 
$1,193,780.31.  These  averages  reflect  the  gradually  increasing  work 
of  the  depart  ment. 

The  increase  of  work  required  ;i  large  increase  of  personnel.  As 
far  as  possible  this  increase  has  been  made  up  of  residents  of  Cuba. 
When  the  available  supply  of  technically  trained  men  in  the  island 
had  been  exhausted,  engineers  were  engaged  from  abroad,  mainly 
from  the  United  States,  as  permitted  by  law.  On  September  30, 
1906,  the  technical  force  numbered  251;  on  September  30,  L907,  it 
numbered  184.  Officers  and  enlisted  men  of  the  Engineer  Corps  of 
the  United  States  Army  have  also  rendered  notable  assistance. 

The  work  of  the  department  may  be  summarized  as  follows: 

Roads  and  bridges. — At  the  end  of  the  Spanish  rule  in  the  island 
there 'were  256  kilometers  of  highways  in  existence.  Work  of  road 
construction  was  begun  by  the  military  government  of  intervention 
and  continued  under  the  Republic.  On  September  30,  1906.  the  mile- 
age had  been  increased  to  610  kilometers,  and  on  September  30,  1907, 
to  786  kilometers.  On  the  latter  date.  697  kilometers  were  under  con- 
struction, the  greater  part  of  which  will  be  completed  by  the  end  of 
the  current  fiscal  yar,  making  a  grand  total  of  1,181  kilometers  with 
all  bridges  and  culverts  required. 

Important  highways  are  given  a  crowned  metaled  width  of  5 
meters,  with  drainage,  ditches,  culverts,  and  bridges.  Telford  ma- 
cadam is  used  where  the  soil  is  soft  or  drainage  is  poor.  These  are 
termed  "•macadam  roads"  or  "highways."  Less  heavily  traveled 
roads  are  drained,  graded,  crowned,  and  provided  with  culverts  and 
bridges  and  are  metaled  only  where  the  ground  is  -oft.  These  are 
termned  "  improved  roads."  The  figures  shown  in  the  preceding 
paragraph  include  both  classes  of  road--. 

The  highways  cost  from  $6,500  to  $15,000  per  kilometer,  according 
to  the  difficulty  of  obtaining  suitable  road  metal,  and  the  nature  of 
the  country.  Efforts  are  being  made  to  reduce  the  cost  by  the  intro- 
duction and  extensive  use  of  road  machinery. 

The  congressional  appropriations  for  road  work  were  made  in  com- 
paratively small  amounts  and  for  widely  scattered  localities,  with  the 
result  that  several  year-  were  required  to  complete  a  road  between 
two  objective  points;  the  contract-  were  too  small  to  warrant  the  pur- 
chase of  expensive  plants,  and  the  roads  when  constructed  did  not 


connect  into  a  well-considered  system  which  could  be  maintained  eco- 
nomically. In  April,  1007.  a  definite  programme  was  adopted  for 
the  construction  or  improvement  of  2,304  kilometer-  of  roads  at  an 
estimated  cost  of  $13,000,000,  to  be  expended  during  a  period  of  three 
years.  In  addition  to  this,  as  funds  arc  available,  the  short  stretches 
of  roadway  begun  with  congressional  approprial  ions  and  not  included 
in  the  general  programme  are  to  1 xtended  to  their  various  ob- 
jectives. In  addition  to  the  road-  above  provided  for  and  which  are 
those  of  most  immediate  necessity,  the  need  for  at  least  3,000  kilo- 
meters more  can  now  be  seen.  In  the  absence  of  a  sufficient  Dumber 
of  civilian  experts,  by  authority  of  the  commanding  general  of  the 
army  of  Cuban  pacification.  89  kilometers  of  road  in  Pinar  del  Rio 
are  being  constructed  under  the  supervision  of  the  officers  and  men 
of  the  Third  Battalion  of  Engineers,  U.  S.  Army,  under  the  command 
of  Maj.  M.  Patrick.  The  tables  appended  to  the  report  of  the  acting 
secretary  show  fully  the  status  of  the  road  and  bridge  work  of  the 
island. 

Besides  the  large  number  of  bridges  included  in  the  general  appro- 
priations for  roads,  separate  appropriations  have  been  made  since 
January  1.  1906,  for  79  bridges.  Of  these,  9  have  been  completed.  59 
are  under  construction,  and  11  are  under  study. 

Harbors. — Works  of  improvement  are  in  progress  in  the  harbor- 
of  Habana,  Matanzas,  Cienfuegos.  Santiago,  and  the  [sle  of  Pines. 
A  project  for  extensive  betterments  in  the  harbor  front  of  Habana  has 
been  prepared,  as  well  as  projects  for  work  in  a  number  of  other 
ports  and  channels.  Two  new  dredging  plants  have  been  coin  raited 
for  and  will  soon  be  ready  for  work.  It  is  proposed  to  carry  on  this 
work  as  fully  as  funds  permit. 

Aids  to  navigation. — The  existing  Light-houses  are  :'»!  in  number. 
During  the  last  year  1  new  light-house  has  been  built,  L3  repaired, 
buoys  and  beacons  repaired  and  reestablished,  the  installation  <>t*  the 
improved  lighting  system  continued,  and  the  construction  of  6  new 
light-houses  authorized,  of  which  2  will  be  begun  during  this  fiscal 
year. 

Sanitation. — In  tin1  absence  of  a  national  department  of  sanitation 
Congress  had  made  appropriations  for  certain  of  the  sanitary  work 
in  If.  cities,  outside  of  Habana,  to  be  carried  on  by  the  department 
of  public  works.  This  work  has  been  carried  on  generally  by  admin- 
istration, and  good  results  have  been  accomplished.  In  measure  as 
the  new  department  of  sanitation  perfect-  it<  organization  the  street 
cleaning  work  and  work  of  collection  and  removal  of  garbage  will  be 
assumed  by  it.  Since  the  beginning  of  the  military  government  "I 
intervention  all  of  the  municipal  engineering  work-  in  tin-  city  "I 
Habana  have  been  carried  on  by  the  State.  The  city  i-  .-lean  and  its 
street-   are   in   a-  good   condition   as   the  character  of   the    pavements 


Avill  permit.    Details  of  the  work  done  can  be  found  in  the  report  of 
the  act  ing  secretary  and  its  appendice  . 

The  water-distribution  system  of  Habana  has  been  extended  to  the 
neighboring  l owns  and  villages,  including  Marianao,  Camp  Columbia, 
and  Guanabacoa,  under  appropriations  made  by  Congress.  The  dis- 
tribution system  of  Habana  is  defective.  There  is  much  waste  and 
pressures  are  insufficient.  The  acting  secretary  recommends  that 
measures  be  taken  to  avoid  impending  shortness  of  supply. 

Waterworks  throughout  island,    Congress  has  made  provision  for 
water  supply  systems  for  16  of  the  towns  of  the  island.    Two  ! 
been  completed  and  arc  in  operation.     Contract-:  have  been  mad"  for 
work  on  four  more.     Projects  for  the  remainder  arc  being  made.     It 
is  the  adopted  policy  to  extend  this  work  as  far  as  possible. 

Inundation. — Periodical  Hoods  in  the  Roque  district  of  Matanzaa 
Province  and  in  the  Sagua  la  Grande  Valley,  having  caused  g 
damage,  Congress  made  appropriations  for  an  investigation  in  their 
cause  and  for  the  formation  of  projects  for  the  protection  of  the 
country  affected.  The  investigations  have  been  practically  completed 
and  the  projects  made.  They  contemplate  the  drainage  and  protec- 
tion of  the  lands  at  an  estimated  cost  of  $1,724,513.  These  proj< 
Avill  have  to  be  undertaken  in  the  future  when  funds  become  available. 

State  buildings. — These  buildings  had  been  much  neglected  for 
several  years,  and  at  its  last  session  Congress  made  appropriations 
aggregating  $2,396,382.67  for  repairs  and  new  constructions.  This 
required  a  practical  reorganization  of  the  department.  Work  has 
been  carried  on  under  246  projects.  The  average  monthly  expendi- 
tures under  this  head  for  the  different  periods  have  been:  July  to 
September,  1906,  $25,825.64;  September,  1906,  to  June.  1907.  $55,- 
949.79:  June  to  September.  1907.  $87,825.23.  In  the  new  construction 
an  effort  is  made  to  use  modern  methods,  but  to  have  the  design  con- 
form to  the  requirements  which  experience  has  shown  to  be  best  suited 
to  the  climate  and  conditions. 

DEPARTMENT    OF    AGRIOtTLTTTBE,    INDUSTRY,    AND    COMMERCE. 

The  department  of  agriculture,  industry,  and  commerce  is  divided 
into  four  divisions,  viz.  meteorology  and  crops,  forests  and  mines. 
industry  and  commerce,  and  agriculture.  Each  of  these  divisions  is 
divided  into  bureaus.  The  employees  of  the  department  of  agri- 
culture, distributed  among  the  six  provinces  of  the  Republic,  are 
rendering  good  service  and  no  complaints  have  been  received  for 
inefficiency. 

The  division  of  meteorology  and  crops  is  divided  into  two  bureaus. 
a  weather  bureau  (meteorology;*  and  a  bureau  of  fisheries.  The 
weather  bureau  has   made   observations  throughout  the   island   and 


89 

published  the  results  of  the  same  in  a  weekly  bulletin  and  in  the 
monthly  bulletin  of  the  department.  It  is  in  daily  telegraphic  com- 
munication with  the  Weather  Bureau  at  Washington.  Such  aid  as 
the  marine  officers,  whether  national  or  foreign,  have  asked  for  has 
been  immediately  rendered.  The  special  system  of  flag  signals  used 
by. the  United  States  Weather  Bureau  has  been  adopted  here.  .V 
seismic  service  has  been  also  established  for  the  purposes  of  making 
observations.  The  bureau  of  fisheries  has  been  recently  established 
and  renders  very  important  services  to  the  fishing  industry.  With 
the  object  of  assisting  the  bureau,  a  fish  commission  has  recently  been 
organized. 

The  division  of  forests  and  mine-  has  demarcated  75  mines,  con- 
taining in  all  26,671  hectares,  and  has  rendered  decisions  in  a  Large 
number  of  petitions  and  other  matters  affecting  the  mines  and  fori 
of  the  Republic. 

The  division  of  industry  and  commerce  has  charge  of  the  industrial 
and  commercial  trade-marks,  patents,  and  all  matters  relative  to  in- 
dustry and  commerce.  It  has  settled,  during  this  year,  L,766  matters 
relating  to  trade-marks;  has  received  330  application-  for  patents  and 
decided  225,  and  is  now  organizing  a  special  bureau  of  industry  and 
commerce. 

The  division  of  agriculture  has  charge  of  agricultural  statistics, 
and  assists  in  the  development  of  the  wonderful  agricultural  re- 
sources of  Cuba.  The  work  carried  on  by  the  central  experiment  sta- 
tion shows  constant  scientific  progress,  and  the  publications  of  this 
station,  with  the  other  publications  of  the  department,  contribute 
much  to  dissemination  of  useful  knowledge  concerning  agriculture 
and  the  cattle  industry.  The  encouragement  of  immigration  ami  the 
colonization  of  immigrants  are  also  confided  t<>  this  division. 

DEPARTMENT  OF   SAN  II  ATin.N. 

The  report  of  the  department  of  sanitation  shows  that  the  excellent 
sanitary  work  performed  in  Cuba  under  the  former  military  gov- 
ernment of  intervention  was  due  to  the  zeal  and  capacity  of  the  indi- 
vidual sanitary  officers,  without  the  assistance  of  any  national  or- 
ganization, although  assistance  from  the  national  treasury  was  freely 
given.  Upon  the  establishment  of  the  Republic  the  municipalities 
outside  of  Habana  were  thrown  on  their  own  resources,  thus  explain- 
ing the  deterioration  of  sanitary  conditions.  1  n  I  [abana  the  sanitary 
services  were  supported  by  the  state  with  great  liberality,  and  have 
on  the  whole  been  well  performed. 

It  having  become  evident  that  there  is  no  prospect  that  the  munici- 
palities will  be  able  to  maintain  efficienl  sanitary  services,  these  have 
been  taken  in  charge  by  the  state,  by  decree  No.  894,  dated  A.ugust  •_'»'■. 
1907,  which  substitutes  a  national  sanitary  officer  appointed  by  the 


90 

executive  l*«»r  the  Local  board  of  health  theretofore  existing  in  each 
municipality.  * 

The  reporl  of  the  chief  sanitary  officer  gives  the  history  of  the  oc- 
currence of  yellow  IVvcr  in  this  island  since  ite  introduction  from 
New  Oilcans  in  October,  L905,  the  blame  Cor  which  must  be  divided 
between  die  <|iia rant i 1 1  < ■  service  and  the  department  of  land  sanita- 
tion, which  two  services  had  been  separated  the  year  before,  the  for- 
mer having  been  transferred  to  the  treasury  department.  Alter  a 
sharp  epidemic  in  the  fall  of  L905  and  another  in  the  fall  of  1906  in 
Ilabana.  the  infection  was  each  time  extinguished  in  this  city,  but 
lingered  in  the  rural  districts,  where  no  effective  machinery  for  ob- 
serving and  combatting  it  existed. 

It  appeared  in  the  spring  of  1906  in  the  district  of  Bolondron, 
Matanzas  Province,  and  in  the  spring  of  1907  in  the  municipality  of 
Nueva  Paz,  in  the  southeastern  part  of  the  Province  of  Habana. 
During  the  present  year  the  disease  has  been  promptly  extinguished 
whenever  it  has  appeared  in  the  large  cities,  with  the  exception  of 
Cienfuegos,  where  it  appeared  early  in  August  in  a  hospital  used  in 
common  for  Cubans  and  soldiers  of  the  American  garrison.  The  sani- 
tary conditions  of  Cienfuegos  were  very  bad,  owing  to  the  absence  of 
sewers  and  to  a  very  deficient  water  supply,  which  obliged  the  inhab- 
itants to  keep  water  stored  in  barrels,  tanks,  and  other  receptacles 
that  bred  mosquitoes  in  large  numbers. 

Energetic  measures  taken  by  the  Department  brought  the  disease 
under  control  within  two  months,  only  two  cases  of  the  disease  having 
appeared  there  since  the  29th  of  September. 

Yellow  fever  has,  however,  this  summer  shown  an  increased  tend- 
ency to  spread  in  the  small  towns  and  large  sugar  plantations,  and 
has  appeared  altogether  in  30  different  localities  in  the  island.  The 
disease  was,  in  1901.  banished  from  the  island  by  measures  of  fumi- 
gation and  mosquito  prevention,  confined  to  a  few  of  the  larger  cities, 
but  a  much  wider  extension  of  this  work  is  now  necessary  on  account 
of  the  rapid  increase  in  the  number  of  nonimmunes  in  the  island,  and 
the  greatly  increased  facilities  for  movement  from  place  to  place  of 
the  floating  population,  including  the  large  number  of  nonimmune 
Spanish  laborers  employed  in  the  gathering  of  the  sugar  crop  and  on 
public  works. 

Effective  preventive  work  against  yellow  fever  in  the  municipal- 
ities outside  of  Ilabana  has  not  heretofore  been  practicable,  because 
such  measures  had  to  be  administered  through  local  sanitary  authori- 
ties. The  nationalization  of  the  sanitary  services  gives  now.  however, 
the  machinery  for  their  prosecution  in  places  where  foci  of  yellow 
fever  have  been  established,  and  this  has  been  already  initiated  and 
will  be  carried  on  throughout  the  winter.  To  carry  on  such  meas- 
ures efficiently  throughout  the  entire  island,  as  is  being  done  in  the 


Ill 

Canal  Zone  in  Panama,  although  theoretically  desirable  is  practically 
impossible,  on  account  of  the  great  area  of  the  island  (  1 t,000  square 
miles)  and  the  immense  and  prohibitive  cost.  It  is  hoped,  however, 
that  it  Avill  not  be  necessary. 

Measures  have  been  taken  during  the  past  year  to  diminish  the 
course  of  tuberculosis  in  Habana,  which  is  more  fata]  than  all  the 
other  infectious  diseases  combined. 

The  principal  recommendations  of  this  report  are  the  transfer  of 
the  quarantine  service  to  the  sanitary  department,  the  carrying  out 
of  the  plans  under  contemplation  for  the  sewerage  of  Habana  and 
Cienfuegos,  and  for  a  good  water  supply  in  the  latter  city.  A  de- 
cree transferring  the  quarantine  service  to  the  sanitary  department 
has  been  issued  since  the  date  of  the  department's  report,  and 
measures  looking-  to  the  matter  of  the  sewerage  and  water  supply 
are   now    under   consideration. 

ARMED    FORCES. 

When  the  provisional  administration  by  the  United  States  <d' 
Cuba  was  instituted,  on  September  2J),  L906,  the  force-  of  the  Rural 
Guard  were  found  concentrated  in  different  places  throughout  the 
island  to  carry  -on  the  operations  of  the  campaign  made  necessary 
bv  the  insurrection  during  the  month-  of  Augu>t   and   September. 

At  this  time  the  strength  authorized  was  3,020  officers  and  men, 
according  to  the  law  of  October  L8,  L902,  with  an  additional  2,186 
officers  and  men.  provided  by  the  decree  of  the  President  of  the 
Republic  dated  August  20,  1906.  This  total  strength  of  the  Rural 
Guard,  5,305  officers  and  men.  was  approved  by  an  act  <>f  the  Cuban 
Congress  of  September  L5,  L906,  which  act  also  consolidated  the 
artillery  corps  with  the  Rural  Guard,  all  being  designated  '•The 
armed  forces  of  the  Republic." 

On  October  15, 1900,  the  national  militia,  which  had  been  organized 
on  account  of  the  insurrection,  was  mustered  <»ut  of  the  service;  also 
the  additional  medical  officers  and  hospital  corps  men  for  each  regi- 
ment, and  the  personnel  of  the  Rural  Guard  thus  reduced  to  5,170 
officers  and  men.  which  was  the  authorize. I  strength  until  the  end  of 
the  fiscal  year  ending  June  30,  L907. 

The  militia  had  been  organized  in  a  very  irregular  and  hastj  man 
ner.     Many   prominent   citizen-,  mosl   of  those  who  look   part    in  the 
former  wars  between  Cuba  and  Spain  and  had  obtained  some  military 
reputation,  were  deputized  by  the  Government  of  Cuba  to  enlist  and 
equip  these  militia  companies  throughout   the  island,  at  the  public 
expense.     For  the  purpose  of  auditing  claim-  for  supplies,  etc.,  fur 
nished  the  militia,  a  commission  composed  of  one   American  officer 
and    two  officers  of   the    Rural    Guard,   ha-   been    in    session   at    head 
quarters.     They  have  up  to  the  present   time  examined    1,681   chum-. 


92 

representing  $312,961.73,  and  recommended  paymenl  to  the  extent  of 
$249,302.82.  One  hundred  and  forty-one  claims,  to  the  amount  of 
$48,199.33,  are  stil]  pending. 

()n  October  L5,  L906,  when  the  national  militia  was  mustered  out 
<>f  the  service,  the  Rural  Guards  were  organized  as  follows:  Head- 
quarters of  the  armed  forces,  8  officers;  firsl  regiment,  L,734  officers 
and  men:  second  regiment,  1.711  officers  and  men;  third  regiment, 
1 .71  I  officers  and  men;  making  a  total  of  5,170  officers  and  men. 

The  Firsl  Regiment,  covering  the  territory  of  the  provinces  at 
ilaliana  and  Pinar  del  Rio,  had  L5  separate  posts ;  the  Second  Regi- 
men! in  the  provinces  of  Matanzas  and  Santa  Clara,  26  posts;  and 
the  Third  Regiment  in  the  provinces  of  Oriente  and  Camaguey,  lol 
posts.  ( >wing  to  the  necessities  of  the  uprising  the  troops  <d'  the  Firsl 
and  Second  regiments  had  been  concentrated  by  suppressing  the 
smaller  posts,  while  in  Camaguey  and  Oriente.  where  the  outbreak 
had  been  less  serious,  it  was  not  necessary  to  do  so.  ( )n  June  30,  1907, 
when  the  island  had  again  become  thoroughly  tranquil,  -mallei-  posts 
were  reestablished,  the  First  Regiment  having  83;  the  Second  113; 
and  the  Third  114.  The  Rural  Guard  on  September  30,  L906,  thus 
had  a  total  number  of  142  posts,  and  a  year  later  (September  30. 
1907)  a  total  of  315  posts  throughout  the  island. 

On  July  1,  1907,  the  budget  for  the  fiscal  year  L908  went  into 
effect,  and  the  personnel  of  the  armed  forces  was  increased  slightly; 
25  men  being  assigned  to  the  general  service  corps,  and  1  horseshoer 
and  1  farrier  for  each  troop,  which  makes  the  present  authorized 
strength  5,243  officers  and  men.  This  force  is  sufficient  under  present 
conditions  to  protect  the  lives  and  property  of  the  people,  -npported 
by  the  moral  effect  of  the  presence  of  American  troops  on  the  island, 
and  the  island  of  Cuba  to-day  is  in  a  better  state  of  peace  and  tran- 
quillity than  ever  before  in  its  history. 

The  satisfactory  conditions  at  present  existing  in  the  armed  forces 
are  to  be  attributed  in  large  degree  to  the  intelligence,  energy,  and 
faithful  work  done  by  the  American  officers  detailed  for  duty  with 
the  same.  On  two  occasions,  the  only  two  of  any  importance,  Cap- 
tains Wittenmyer  and  Dougherty  themselves  took  the  field  in  person 
in  pursuit  of  outlaws,  and  so  vigorously  was  the  campaign  and  pur- 
suit conducted  that  those  who  desired  to  make  trouble  were  either 
killed,  captured,  dispersed,  or  forced  to  surrender  to  the  civil  author- 
ities. The  manner  in  which  these  outlaws  were  run  down  under 
American  supervision  has  been  discouraging  to  other-  who  antici- 
pated engaging  in  the  same  mischief. 

The  discipline  of  the  armed  forces  is  excellent  and  the  requirements 
for  enlistment  are  strict.  The  officers  show  a  commendable  interest 
in  their  duties.  There  has  been  gratifying  good  feeling  between  the 
Rural  Guard  officers  and  men  and  the  American  troops.     In  many 


93 

instances   American   officers   have    permitted    the   Cuban    troops 
mingle  freely  with  the  Americans  at  drill,  in  the  barracks,  and  off 
duty,  with   the  result  that  the  native  troops   have  acquired   much 
knowledge  of  benefit  to  them. 

A  number  of  schools  of  instruction  haw  been  established  for  re- 
cruits, noncommissioned  officers  and  officers.  These  schools  have  a 
regular  six  months  course  and  teach  the  requirements  of  discipline 
and  efficiency  as  well  as  the  relations  with  the  civil  authorities.  The 
general  policy  followed  has  been  not  only  to  have  an  armed  force  of 
value  and  credit  in  the  present,  but  lay  a  linn  foundation  of  efficiet 
for  the  future. 

Efforts  have  been  made  to  separate,  so  far  a-  possible,  tin'  work 
done  by  the  Rura]  Guard  from  that  required  to  be  don,,  by  the  mu- 
nicipal police;  to  limit  and  restrict  the  work  of  the  Rural  Guard  to 
what  their  name  indicates — work  in  the  rural  districts.  There  have, 
however,  been  many  cases  where  the  local  and  municipal  authoril 
through  the  judges  or  alcaldes,  have  called  upon  the  Rural  Guard  to 
enforce  law  and  order,  but  the  policy  is  to  let  the  local  civil  authori- 
ties feel  that  they  should  depend  upon  their  own  local  police  for 
work  within  the  town  or  city  limits.  The  Rural  Guards  are  required 
by  law  to  re-pond  to  any  call  made  upon  them  by  the  civil  authori- 
ties, but  such  calls  are  becoming  less  frequent  all  the  time.  Whether 
in  the  rural  or  urban  districts  it  has  always  been  sought  to  maintain 
the  utmost  harmony  with  the  civil  authorities. 

Under    the   decree   of   the    I  Ve-'n  lent    of   the    Republic   of    A.UgUSt    20, 

190*').  the  Artillery  Corps,  which  had  before  this  been  a  separate  com- 
mand, was  consolidated  with  the  Rural  Guard,  and  together  they 
formed  the  armed  forces  of  the  Republic.  The  Artillery  Corps  now 
numbers  680  officers  and  men- — 6  companies.  They  are  all  stationed 
in  and  about  llabana.  with  the  exception  of  !  company  at  Santiago 
de  Cuba.  One  of  these,  companies  besides  being  equipped  a-  infan- 
try, i-  a  mountain-gun  battery.  This  battery  i-  at  present  in  ramp 
with  a  battalion  of  American  artillery  at  the  annual  target  practice 
near  Ouanajay.  There  is  also  attached  to  the  artillery  an  additional 
organization  known  as  the  machine-gun  company,  equipped  with  L0 
Colt  automatic  guns.  The  Artillery  Corp-  to-daj  is  a  reserve  for.-,., 
mainly  infantry,  which  is  held  in  hand  at  llabana  for  local  disturb- 
ances. The  only  occasion,  however,  which  ha-  brought  this  command 
into  service  for  such  purpose  was  during  a  brief  railroad  strike  at 
Camaguey  in  December.  L906,  but  the  mere  presence  of  the  troops 
was  sufficient  to  prevent  disturbance. 

What   was  formerly  the  hospital   \'<>v  the  artillery  near  Cabana-  ha- 
been  organized  and  equipped   a-  a   general   hospital    for  the  armed 
forces,   having   L20   beds.     This   not    only    fulfills   it-    purpo 
.hospital,  but  is  also  a  school  of  instruction   for  medical  officers 
hospital  corps  men.  who  conic  there  and  take  a  regular  course. 


94 

The  great  number  of  horses  and  ponies  turned  in  by  the  militia 
have  been  carefully  culled  over;  those  found  permanently  unservice- 
able have  been  < -< > r  1 « I « ■  i j 1 1 1 < -< I  and  sold  at  public  auction,  and  the  tro 
of  (lit-  Rural  Guard  have  been  remounted  with  other  animal-  bo 
better  shape,  the  surplus  horses  now  being  held  on  pasture,  subject  to 
further  demand. 

The  genera]  question  of  the  equipment  of  the  armed  forces  i-  en- 
tirely satisfactory.  New  and  better  contracts  have  been  made  for 
rations,  clothing,  forage,  and  all  essentials  to  a  military  body. 

CONCLUSION. 

In  closing  it  is  a  duty  and  a  pleasure  to  express  my  appreciation 
of  the  excellent  work  performed  by  the  personnel  of  the  provisional 
governor's  office.  The  peculiar  nature  of  the  provisional  adminis- 
tration, combining  as  it  doe-  executive  and  legislative  functions,  and 

the  prevailing  tendency  to  look  to  the  Executive  for  every  kind  of 
assistance  and  relief,  have  entailed  an  enormous  amount  of  work  on 
the  office  of  the  provisional  governor.  Scores  of  petition-,  com- 
plaints, and  other  communications  of  the  most  varied  kind  are  daily 
received.  My  cordial  acknowledgments  are  especially  due  to  Map 
Frederick  S.  Foltz,  Fifteenth  Cavalry.  U.  S.  Army,  who  has  had 
charge  of  the  office  and  has  performed  his  onerous  duties  with  com- 
mendable zeal  and  efficiency;  to  Capt.  James  A.  Ryan,  Fifteenth 
U.  S.  Cavalry,  and  Maj.  Jose  Marti.  Artillery  Corps  of  Cuba,  detailed 
as  military  aids  to  the  provisional  governor;  Mr.  Jorge  Alfredo 
Belt,  legal  assistant  in  the  office;  and  to  Judge  Otto  Schoenrich,  who, 
in  addition  to  his  duties  as  member  of  the  advisory  commission,  has 
been  attached  to  the  provisional  governor's  office  and  has  rendered 
valuable  service. 

This  report  would  be  incomplete  and  the  statement  as  to  the  work- 
ings of  the  provisional  administration  inadequate,  if  no  reference 
were  made  to  the  services  of  Hon.  Frank  Steinhart,  who  placed  at  the 
disposition  of  the  provisional  governor  the  large  fund  of  information 
respecting  Cuban  affairs  acquired  by  him  during  nine  years'  service 
in  the  island  in  connection  with  the  military  government,  also  as 
agent  to  the  War  Department  and  later  as  American  consul-general 
at  llabana.  This  knowledge  and  also  Mr.  Steinhart  ">  advice  and  ad- 
monition has  been  of  great  value,  and  I  am  indebted  to  him  in  large 
measure  for  the  solution  of  many  intricate  and  important  problems 
with  which  the  Government  has  been  called  upon  to  deal. 

Charles  E.  Magoon, 
Provisional  Govt  rnor. 

The  >i:<  RETARY  OE  War. 


UNIVERSITY  OF  CALIFORNIA  LIBRARY 

Los  Angeles 

This  book  is  DUE  on  the  last  date  stamped  below. 


mm 


SliEWABLE 


OCT  1  < 

DUE  2  MS  FROM 
SClA  access  sfrt 

Interlibrary  Lo^n 
11630  Univerj    y 
Sjx  951575 
■  Angeles   CA 


NOV  0  9  ZOM 


2004  /  , 


DATE  RECEIVED 


Researi  h  Library 
1575 


UC  SOUTHERN  REGIONAL  LIBRARY  FACILITY 

AA    001  180  588   4 


u 


I  III 


3  1158  00953  4610 


Uni 
S 


